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Question 13 Incorrect Marked out of 1.00 if Flag question Consider the following two-person (1 and 2) two-good (X and Y) economy. The utility of
Question 13 Incorrect Marked out of 1.00 if\" Flag question Consider the following two-person (1 and 2) two-good (X and Y) economy. The utility of person i is given by | ] Uri = bixgl yiz where xi and vi denote respectively person i's the consumption amount of good X and good Y, i=1, 2. The value of parameter bi is b1 = 4 for person 1 and 132 = 1 for person 2. Person 1's income is M1 = 1050 and person 2's income is M2 = 1830 dollars. The price of good X and price of good Y are given respectively by px =10 and py = 10. Suppose the government imposes a uniform sales tax equal to 13% only on the person with the greater income (and if their incomes are equal, imposes this sales tax only on person 2) and gives the proceeds to the other person. Determine the efficiency loss due to this "redistribution scheme" and then enter the value of the "efficiency loss\" below. Answer: -35.685 8 The correct answer is: 0.00000
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