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Consider the following two-person (1 and 2) two- good (X and Y) economy. The utility of person i is given by 11 U; = b;x;

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Consider the following two-person (1 and 2) two- good (X and Y) economy. The utility of person i is given by 11 U; = b;x; y; where xi and yi denote respectively person i's the consumption amount of good X and good Y, i=1, 2. The value of parameter b; is b = 5 for person 1 and b2 = 1 for person 2. Person 1's income is M1 = 1050 and person 2's income is M2 = 1810 dollars. The price of good X and price of good Y are given respectively by px =10 and good Y at price py = 10. Suppose the government imposes a per-unit tax tx on good X on the person with the greater income (and if their incomes are equal, imposes it on person 2) and gives the proceeds (i.e., the total tax amount collected) to the other person. Find the value of the per-unit tax such that the utility of the recipient of the tax amount increases by 80 compared to her utility in the absence of this redistribution scheme. Then enter this value of tx below

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