EXERCISE 2 Max has a utility function M31, 11:2) : 2x9'3'rg'3 + 1. The price of 331 and 1172 are both $1 and Max has an income of $20. (1) How much of each good will he demand? (2) A tax is placed on 391 so that. 331 now costs Max $2 while his income and the price of 11:2 stay the same. How much of good 391 does he demand now? (3) would Max be as well-off as he was before the tax if when the tax was imposed} his income rose by an amount equal to $1 times the answer to part (2]