Question!: (XP) ((1-x)P₁ ji-xu = h₁ (p₁u) h₂[p₁u) = ((1-a)p₁) a u арг V[p,w) = α²² (1-α) 1-a w Pia P₂i-a What is the highest lump sum tax that would be equivalent to p.. increasing to pi in terms of utility? 6) using money metric utility. EV = elp, u') - W v(p, e[p, u.)) = u' 'U' = αª (1-α)1-a игра Раша xa (1-x)!~ elp, u) e (p, v(p₁, P₂, W)) ва реге but n' = αª (1-a)1-a w P₁ api-a Ev 1₁a (1=a)¹=α w laº -pia pia EV = w[ D² - 1] Pia B₂² - W X² H-α)-α = W Pira Lova J P₁-W
Question!: (XP) ((1-x)P₁ ji-xu = h₁ (p₁u) h₂[p₁u) = ((1-a)p₁) a u арг V[p,w) = α²² (1-α) 1-a w Pia P₂i-a What is the highest lump sum tax that would be equivalent to p.. increasing to pi in terms of utility? 6) using money metric utility. EV = elp, u') - W v(p, e[p, u.)) = u' 'U' = αª (1-α)1-a игра Раша xa (1-x)!~ elp, u) e (p, v(p₁, P₂, W)) ва реге but n' = αª (1-a)1-a w P₁ api-a Ev 1₁a (1=a)¹=α w laº -pia pia EV = w[ D² - 1] Pia B₂² - W X² H-α)-α = W Pira Lova J P₁-W
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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please teach explain step by step,
![Question!: / XP₂
((1-x²) P₁
V[p₁w) = α²² (1-α)²-a W
Pia Pla
What is the highest lump sum tax that would be equivalent to P₁.
increasing to pi in terms of utility?
Pr
`n =h₂₁ (p₁u) h₂(p₁u) = ((1-α) p₁) ªu
и
и
арг
b) using money metric utility.
EV = elp, u')
W
v(p, elp, u)) = u²
'U² = αª (1-a)1-a
Pia Pela
игра вка
xa (1-x)1-x
=
elp, u)
e (p, v(p₁, P₂, W))
a
but n' = αª (1-a)1-a w
EV
P₁a pla
H
Тая (таза ш
Taal
-pia pla
€V=W [²1]
Pia Pla
x² H-α)™-α
-W
= W
Pia
.
Lola J
P₁-W](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4641886b-89da-403b-8f60-7233a6fc439f%2F94e2e6b9-c71e-474a-b5ed-4070494d0175%2Fl3dcal_processed.png&w=3840&q=75)
Transcribed Image Text:Question!: / XP₂
((1-x²) P₁
V[p₁w) = α²² (1-α)²-a W
Pia Pla
What is the highest lump sum tax that would be equivalent to P₁.
increasing to pi in terms of utility?
Pr
`n =h₂₁ (p₁u) h₂(p₁u) = ((1-α) p₁) ªu
и
и
арг
b) using money metric utility.
EV = elp, u')
W
v(p, elp, u)) = u²
'U² = αª (1-a)1-a
Pia Pela
игра вка
xa (1-x)1-x
=
elp, u)
e (p, v(p₁, P₂, W))
a
but n' = αª (1-a)1-a w
EV
P₁a pla
H
Тая (таза ш
Taal
-pia pla
€V=W [²1]
Pia Pla
x² H-α)™-α
-W
= W
Pia
.
Lola J
P₁-W
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