A consumer has utility function U(x1,x2) = x1x2. (a) Derive the expenditure function and the Hicksian demand function. (b) Derive the indirect utility function and the Marshallian demand function. (c) Suppose that his budget is I = 200 and current prices are p01 = 2 and p02 = 3. The government is introducing a tax on x1 of 100% so the price will increase to p1 = 4. Compute the compensating variation (CV) and equivalent variation (EV) associated to this price increase. What is the change in consumer surplus (CS) associated to the price increase? Compare CS to CV and EV. (d) Suppose that after the government introduces the tax, it also provides an income subsidy equal to |CS| so that the consumer now has an income of I + |CS|. Compare the welfare of the consumer before and after the tax and subsidy are implemented. Is the consumer better off after the tax and subsidy are implemented