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How do I figure out utility and solve these? Thanks in advance! W X'Y'L XIX; 5t. [00: (Q+t)? loo Questions: 1 . what is the
How do I figure out utility and solve these? Thanks in advance!
loo Questions: 1 . what is the sticker price of good 1? 2. if the per-unit tax (t) on good 1 is $3, how much good 1 does the consumer buy? 3. what's the consumer's utility with this tax? 4. how much revenue does the government generate from this tax? 5. Suppose the government switches to a head tax that brings in the same amount of revenue as you found in question 4 (t=0 now). What's the consumer's utility under this head tax?
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