If someone could also provide explanation, Thank you.

Auguste has utility of goods X, Y given by Auguste began with a budget of $200, and faced prices PX = $1 and Py = $1, allowing him to attain utility level UNT. Compensating Variation: After the tax was imposed on Good X, raising the tax- ridden price Px to $4, Auguste could attain utility level UNT if his budget were increased to E (UNT). The amount of subsidy required to increase Auguste's budget from $200 to E (UNT) is called the COMPENSATING VARATION of the price change due to tax--the amount that would be required to compensate him for the change in the price of X from $1 to $4. This is one measure of the dollar cost of the tax. Equivalent Variation: With no subsidy, the increase in the price of X would have caused a reduction in (maximum) utility to UT. If prices had NOT changed, Auguste would have been forced to accept a reduction in his (maximum) utility, from UNT to UT. if a lump-sum amount had been taken from him, leaving him with budget after lump-sum payment of ELS(UT). The loss of income (budget) corresponding to the change in income from $200 to ELS(UT) is called the EQUIVALENT VARIATION of the price change due to tax-- the amount by which his budget could be reduced, with no change in prices, to leave him with (maximum) utility of UT. This loss of income is equivalent, at unchanged prices, to the loss he experiences by the imposition of the tax. This is another, different, measure of the dollar cost of the tax. To illustrate the EXCESS BURDEN of the tax, compare the CV (Compensating Variation) of the tax, the EV (Equivalent Variation) of the tax, and the amount of tax revenue collected. O1) EV > CV > Tax Collected O2) CV > EV > Tax Collected O3) CV > Tax Collected > EV Q4) Tax Collected > CV > EV 05) EV > Tax Collected > CVThe market for ePids is described by the following (inverse) demand and supply functions ("inverse" signifying that buyer price and seller price are functions of quantity) (Supply Side) Polar = 60+40 2 dollar = = P -15 4 (Demand Side) Pang =660-60 Power = 110--P 6 What is the market clearing (equilibrium) price and quantity? ( 1) p 50 ( 3) p > 250 ; Q 250 ; Q > 50