Consider a household in the static two-good model with preferences over two goods, imported goods c1 and domestic goods c2, represented by the utility function: u(c1,c2)=c1c2 where 1>>0 and 1>>0 are exogenous parameters. Imported goods are priced at (1+)P1 while domestic goods are priced at P2, where >0 is a rate of tariff imposed by the domestic government. The household receives an exogenous flow of income, Y. (a) Express the consumer's optimality condition in terms of the specific utility function. (b) Solve for optimal choices (c1,c2) in terms of exogenous variables only. (c) Perform comparative static analysis to mathematically show how a decrease in the tariff rate would affect the total quantity of consumption, c1+c2. (d) Use indifference curve analysis to illustrate the initial optimal choice (c1,c2), and the new optimal choice (c1,c2) after the tariff reduction. Label your axes, slopes and intercepts. Consider a household in the static two-good model with preferences over two goods, imported goods c1 and domestic goods c2, represented by the utility function: u(c1,c2)=c1c2 where 1>>0 and 1>>0 are exogenous parameters. Imported goods are priced at (1+)P1 while domestic goods are priced at P2, where >0 is a rate of tariff imposed by the domestic government. The household receives an exogenous flow of income, Y. (a) Express the consumer's optimality condition in terms of the specific utility function. (b) Solve for optimal choices (c1,c2) in terms of exogenous variables only. (c) Perform comparative static analysis to mathematically show how a decrease in the tariff rate would affect the total quantity of consumption, c1+c2. (d) Use indifference curve analysis to illustrate the initial optimal choice (c1,c2), and the new optimal choice (c1,c2) after the tariff reduction. Label your axes, slopes and intercepts