Question
A consumers preferences is given by u(x1,x2) = x1,x2. Prices are p1 = p2 = 1 and the income m = 3. Suppose a quantity
A consumers preferences is given by u(x1,x2) = x1,x2. Prices are p1 = p2 = 1 and the income m = 3. Suppose a quantity tax of t = 1 is imposed on good 1. How much will the government generate in revenue?
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Economics Principles and Policy
Authors: William Baumol, Alan Blinder
13th edition
1305280595, 1305280598, 9781305465626 , 978-1305280595
