Assume that the price of wine is currently $2.00, but the city is proposing to impose a $1.00 per unit tax on each bottle (assume that supply is completely inelastic, so the consumer will have to pay the entire burden of the tax). The expenditure function of an individual is given by e(p, u) = up, where 0 < < 1. Find the equivalent variation associated with the tax, the compensating variation, and the loss in consumer surplus (CS).Hint:for loss in CS, find the indirect utility and then recover Marshallian demand using Roy's identity.Then integrate demand over the two prices.For CV, use the formula CV = w(p,u) -w'(p',u) with w(p,u) meaning old expenditure with original prices, original utility and w'(p',u) meaning new expenditure with new prices and original utility.Then, substitute in indirect utility to solve.The technique is similar for EV except you use the formula EV = w'(p',u) -w(p,u)