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22 U = 1n x1 + x2 a) Derive his uncompensated demand for both goods. b) B) Suppose the government imposes an income tax that

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22

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U = 1n x1 + x2 a) Derive his uncompensated demand for both goods. b) B) Suppose the government imposes an income tax that reduces his income by I So if it was w it is now (1 7:)w . How are the demand for both goods reduced? Explain

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