Question!: (XP ((₁-x)p₁ in = hilp₁u) h₂(pin) = ((1-4) p.) ² u и apz V[p₁w) = α² (1-α)²- a w Pia P₂i-a What is the highest lump sum tax that would be equivalent to P₁ increasing to pi in terms of utility? b) using money metric utility. Loa J
Question!: (XP ((₁-x)p₁ in = hilp₁u) h₂(pin) = ((1-4) p.) ² u и apz V[p₁w) = α² (1-α)²- a w Pia P₂i-a What is the highest lump sum tax that would be equivalent to P₁ increasing to pi in terms of utility? b) using money metric utility. Loa J
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 18RQ: What is deflation?
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please teach explain step by step, I do not know notations,
![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%2F2db38be7-9019-4bf8-a58c-59fc8ccaf216%2Fded4f2h_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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