Question-13 The government wants to collect some tax to increase its revenue and build a bridge. Let's assume that there are 100 people in the country. There are two commodities in this country,xandy

People's utility functions are the sameU(x,y)=x2y The price of the good is x $2 and the price of the good y is $3. 50 people have an income of $60, and the remaining 50 people have $120.

If the government decide to put $1 quantity tax on good x. How much money will be collected based on people's optimal choices?

Question-14 Suppose Alex's utility function for apple and orange is U(a,0)=min{a,o}. The price of an apple is $ 5, and the price of an orange is $ 3. Alex has $ 150 to spend on these two goods. The price of the apple reduces to $3.

- What is the original optimal bundle when prices are papplePapple=5 andPorange=3? - What is the optimal bundle when prices arePapple=3 andPorange=3?