Question
P 1 [(P 1 /P 2 (1+t)] p *c 2 + P 2 (1+t)c 2 = Y where, P 1 is price in period 1,
P1[(P1/P2(1+t)]p *c2 + P2(1+t)c2 = Y
where, P1 is price in period 1, P2 is price in period 2, t is tax on consumption, p is elasticity of substitution, Y is income and c1 and c2 are consumption in periods 1 and 2
Solve for c2
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Macroeconomics Theories and Policies
Authors: Richard T. Froyen
10th edition
013283152X, 978-0132831529
