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Answer parts 1-3 please Suppose we are interested in the above M wish to rst establish the theoretical linkage between fast food consumption and weight
Answer parts 1-3 please
Suppose we are interested in the above M wish to rst establish the theoretical linkage between fast food consumption and weight outcome. Consider toformulate the consumer's problem as: maxU(W(F,H),F,H, C) W: weight F : fastfood consumption H : healthy food consumption C: other consumption which is to be maximized under the budget constraint: PfF +PhH +Pcc =1 where Pf, PP. and PC are price of fast foods: healthy foods and other consumption items, respectively, and income I is treated as given. Consider the fastfood tax in terms of fastfood price change. 1) Solve for the optimal weight outcome as a function of exogenous variables. 2) It is then clear that the partial derivative 6W\" /6PF is of our primary interest. From its expression, show that .9;fo = surfs\": + EWHEHPI, where en denotes the elasticity between X and Y. 3) \"That signs do you expect from Em- and EWHStep by Step Solution
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