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Econ 4070 public finance please help DD (no su 0my.yo //yuoffice-my.sharepoint.com/personal/brzozows_yorku_ca/_layouts/15/onedrive.aspx?id=%2Fperson Question 1. a) Consider an economy where all households consume two goods x, and

Econ 4070 public finance please help

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DD (no su 0my.yo //yuoffice-my.sharepoint.com/personal/brzozows_yorku_ca/_layouts/15/onedrive.aspx?id=%2Fperson Question 1. a) Consider an economy where all households consume two goods x, and x2: Where goods are available at prices p, and p2 and households are able to purchase them with their income equal to M. A goverment of that economy needs to raise a fixed amount of revenue R using commodity taxation. Assume that prices are normalized such that p,=1+t, for j=1,2. Is uniform commodity taxation optimal? (8 marks for a formal answer, No marks awarded for guesses.) b) Consider other rules for optimal commodity taxation as discussed in class. What are those rules and what are the common limitations of those rules? (8 marks)

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