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assume a consumer's utility function is X1*X2, income =100, the sticker price of good 1 is $2, the per-unit tax on good 1 is $3,
- assume a consumer's utility function is X1*X2, income =100, the sticker price of good 1 is $2, the per-unit tax on good 1 is $3, and the tax inclusive price of good 2 is $1.
- What is this consumer's optimal (maximum) utility?
1 points (Extra Credit)
QUESTION 2
- assume a consumer's utility function is X1*X2, income =100, the sticker price of good 1 is $2, the per-unit tax on good 1 is $3, and the tax inclusive price of good 2 is $1.
- What is the government's revenue from this consumer?
2 points (Extra Credit)
QUESTION 3
- Suppose the imposed an equivalent head tax.That is, assume instead of the per unit tax the government imposes a head tax that generates the same revenue as you found in the previous question.What is the consumer's utility under this equivalent head tax?
1 is given each time and 3 is question please help
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