Q2 (10 points) Uncle Dana has a budget of 10 million. He wants to buy a house and some cars (1) to fill up his garage. The size of his house is measured in squared meters with a price of 1,000 per square meter (2). His utility follows a quasilinear function, u(X1, X2) = 2VX1 + 2x2. What are the demand functions for the number of cars and the land coverage for his house? Suppose a new mayor is elected in Las Vegas and they implement a land tax of 10% per square meter. What is the income and substitution effect? + Drag and drop an image or PDF file or click to browse