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I have to solve the following economics problem and I don'tknow if what I've done is correct Question-3 [20) Consumer A lives in Aland and

I have to solve the following economics problem and I don'tknow if what I've done is correct

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Question-3 [20) Consumer A lives in Aland and his utility function is given by U(z,, X,) = min{3x, , 272} Consumer B lives in Bland and her utility function is given by U(21, X1) = min (271, 12} Suppose Aland manufactures and exports good 1 while Bland manufactures and exports good 2. Aland and Bland had a great relationship before the last president of Aland was elected. They enjoyed free trade in all goods and as such had exactly the same prices for both goods in both countries. The prices for good 1 and 2 were py = 2 , and p. = 4 respectively, and consumer A and B have 20 and 25 as income respectively. Aland's people elected Donald Duck as their president due to a populous uprising. Donald Duck started a trade war with Bland, and as a result prices of good 2 in Aland changed to p; = 5. However Bland's president, and its citizens wanted to weather the "storm" and elected not to put tariffs or quotas on goods imported from Aland. As such the prices in Bland stayed the same. How much consumer A in Aland would have to be taxed (can be positive or negative) in order to be as "happy" tion as consumer B in BLand after Donald Duck was elected. You can use the formulae at the end of this examina

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