A consumer has utility u (x1, x2) = x1x2. Prices are p1, p2. Income is m.

A. What is the consumer's budget equation?

B. What is the consumer's demand for x1?

C. If there were 10 consumers like this, each with income 100, what would be the aggregate demand for x1?

D. Suppose there a fixed supply of x1 equal to 100. What price equates supply of x1 with demand for x1?

E. If the government imposes a tax of t = 2 on x1, what is the new equilibrium price?

F. Who would bear the burden of this tax? meaning how much more do consumers pay and how much less do producers get under the tax?