Please help with a-f

Consider a community with the following characteristics/initial conditions:

E0 (expenditure on education per pupil) = $6,400 t (property tax rate) = 4% = 0.04 V (property value per pupil) = $160,000 Y (income) = $80,000

p (price elasticity of demand for education) = - 0.5 Y (income elasticity of demand for education) = 1.0

Suppose further that there is exactly one K-12 student living in each and every household so that the number of students = the number of properties. Thus, the average property value in the community is also $160,000.

Suppose the state provides a Guaranteed Tax Base grant with a base grant (B = $1,000) with the following formula:

G+=$1,000 max{0,($200,000 V)t} iii

(a) [3] The community will receive a total grant of ________ from the GTB formula. Use whole numbers (no decimal places) with no "," or "$" [if relevant].

(b) [4] Categorical grants are fungible, so we can treat the grant amount as an increase in income of that amount [your answer in part (a) above]. What is the income effect of the GTB grant on education spending per pupil (E)? That is, how much would you expect the community to change education spending per pupil due to the effective increase in income?

Use whole numbers (no decimal places) with no "," or "$" [if relevant].

(c)[2] What is the effective price per $1 of school spending with the grant? That is, what is the community's cost for increasing total education spending by $1? Round to two decimal places (e.g., 0.10, 1.00, 1.01) with no "," or "$" [if relevant].

(d) [4] What is the change in per-pupil spending (E) due to this "price effect?" Use whole numbers (no decimal places) with no "," or "$" [if relevant].

(e) [2] What is the community total desired level of per-pupil education spending (E1) after the GTB grant is provided? Use whole numbers (no decimal places) with no "," or "$" [if relevant].

(f) [4] Assume the community uses property tax collections only for school spending, meaning they need raise only enough property tax revenue to cover desired spending on education. The community will use a combination of the grant and property tax collections to raise education spending to its new desired level. The property tax rate required to collect this amount of revenue after the grant is ____%.

Round to one decimal place (e.g., 1.1, 1.0)