1-Using the following budget constraint: 200 = 1x + 2Y, Utility U = XY A. How...

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1-Using the following budget constraint: 200 = 1x + 2Y, Utility U = XY A. How many Xs and Ys do you buy, how do you divide your budget, and what is the level of utility achieved? B. The government grants a Subsidy (the opposite of a tax) of $1 on Y. C. What are the new quantities of X and Y purchased? D. What is the total amount the government spends on the Subsidy? E. What is the level of Utility achieved? F. If the same amount of Subsidy is added to income would you achieve a higher utility level? Calculate, Graph and Explain using the logic of the Lump-Sum Principle we saw in class 1-Using the following budget constraint: 200 = 1x + 2Y, Utility U = XY A. How many Xs and Ys do you buy, how do you divide your budget, and what is the level of utility achieved? B. The government grants a Subsidy (the opposite of a tax) of $1 on Y. C. What are the new quantities of X and Y purchased? D. What is the total amount the government spends on the Subsidy? E. What is the level of Utility achieved? F. If the same amount of Subsidy is added to income would you achieve a higher utility level? Calculate, Graph and Explain using the logic of the Lump-Sum Principle we saw in class

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