Question!: in = hilp₁u) n₂(p₁u) = ((1-α)P₁) ªu. арг ((1-x)P₁ V[p₁w) = α²² (1-α)1-a w Pia Pia What is the highest lump sum tax that would be equivalent to P₁ increasing to pi in terms of utility? 1-A Answer: u(x₁, x₂) = x₁²x₂²²* based on the info given this can be checked. via marshallian demands: 2G (D,W) = W 26₂ (P₁W) = (1-9) W
Question!: in = hilp₁u) n₂(p₁u) = ((1-α)P₁) ªu. арг ((1-x)P₁ V[p₁w) = α²² (1-α)1-a w Pia Pia What is the highest lump sum tax that would be equivalent to P₁ increasing to pi in terms of utility? 1-A Answer: u(x₁, x₂) = x₁²x₂²²* based on the info given this can be checked. via marshallian demands: 2G (D,W) = W 26₂ (P₁W) = (1-9) W
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
please teach explain step by step, I do not know notations,
![Question!: / XP₂
((1-x²) P₁
_V[p₁w) = α²² (1-α) ¹-a w
Pia Pia
What is the highest lump sum tax that would be equivalent to pr
increasing to pi in terms of utility?
1-A
Answer: u(x₁, x₂) = x₁²x²₂²²* based on the info given. this can be checked.
via marshallian demands:
29 (p, w) = =&w
Pi
two ways to answer:
a) find EV using Hicksian.
EV =
CP²
U²
u = h₁ lp₁u) b₂[p₁u) = ((1-2) pijan
арг
P₂
-(1-α) ²a pl
1-α
"hilp, P₂, vtp², wt) dp
dp,
u²
=dw
EV = αª (1-α)1=a W
a
-pa pia
Aª
pa
w] [dt_
sa
=
Pº
P₁'
P₁
Ind
EV=W² [²²][²] = [X][4]
Jp²
I][
[
- AW
pa
2
Klik d
2₂ (p₁w) = (1-x²) W
P₂
(1-α) ima
X²²-
(1-α)
Ind
pa
α
X"
P₁²
α
P₁
pa-pia
pa-1 dp,
w p²-P₁
Pr
Pia
=W) 1- P
P₁₁
=игра
11a-7
-pia](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4641886b-89da-403b-8f60-7233a6fc439f%2F4f272878-36f5-470a-a344-03519d0b0367%2F5cabl8_processed.png&w=3840&q=75)
Transcribed Image Text:Question!: / XP₂
((1-x²) P₁
_V[p₁w) = α²² (1-α) ¹-a w
Pia Pia
What is the highest lump sum tax that would be equivalent to pr
increasing to pi in terms of utility?
1-A
Answer: u(x₁, x₂) = x₁²x²₂²²* based on the info given. this can be checked.
via marshallian demands:
29 (p, w) = =&w
Pi
two ways to answer:
a) find EV using Hicksian.
EV =
CP²
U²
u = h₁ lp₁u) b₂[p₁u) = ((1-2) pijan
арг
P₂
-(1-α) ²a pl
1-α
"hilp, P₂, vtp², wt) dp
dp,
u²
=dw
EV = αª (1-α)1=a W
a
-pa pia
Aª
pa
w] [dt_
sa
=
Pº
P₁'
P₁
Ind
EV=W² [²²][²] = [X][4]
Jp²
I][
[
- AW
pa
2
Klik d
2₂ (p₁w) = (1-x²) W
P₂
(1-α) ima
X²²-
(1-α)
Ind
pa
α
X"
P₁²
α
P₁
pa-pia
pa-1 dp,
w p²-P₁
Pr
Pia
=W) 1- P
P₁₁
=игра
11a-7
-pia
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