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) Provide short answers to the following questions. (a) An individual consumes two normal and ordinary goods, A and B. In the consumer problem set
) Provide short answers to the following questions. (a) An individual consumes two normal and ordinary goods, A and B. In the consumer problem set up, if A is taxed, we can use EV Tax Revenue EB = to assess tax inefficiency. What are the two important assumptions we made to derive this expression? In the market set up of good A by the same individual, what do these assumptions translate into? Provided the individual demand is an ordinary demand, what expression would be the best equivalent to EV Tax Revenue EB = here? Briefly explain all your conclusions
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