Consider the following two-person (1 and 2) two-good (X and Y) economy.

The utility of person i is given by

=bi*xi^((1)/(2))*yi^((1)/(2))

where x_i and y_i denote respectively person i's the consumption amount of good X and good Y, i=1, 2.

The value of parameter b_i is b₁ = 4 for person 1 and b₂ = 1 for person 2.

Person 1's income is M₁ = 1050 and person 2's income is M₂ = 1830 dollars.

The price of good X and price of good Y are given respectively by p_x =10 and p_y = 10.

Suppose the government imposes a per-unit tax t_x on good X on the person with the greater income (and if their incomes are equal, imposes it on person 2) and gives the other person a per-unit subsidy s_y on good Y such that its budget is balanced (i.e., the total tax amount collected from one person is equal to the total subsidy amount given to the other person).

Find the value of the per-unit subsidy s_y given the per-unit tax is t_x = 2.

Then enter the value of the per-subsidy below.