Net benefit ratio method of deaton

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Using the net benefit ratio method of Deaton, please tell us whether a 10% increase in output price will increase or decrease the economic welfare of each of the following three agricultural households, by how much, and why (be sure to show your work):

Household A, which produces $100 of output of the crop but does not consume any of it (selling the whole harvest on the market) and has a total income of $200.

Household B, which produces $100 of output of the crop, consumes $50 (selling the difference on the market), and has a total income of $200.

Household C, which produces $100 of output of the crop and consumes $150 (purchasing the difference on the market) and has a total income of $200.

Reference no: EM131434061

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