Diana has utility function over goods X, Y that is given by U(X,Y) = XY 1....
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Diana has utility function over goods X, Y that is given by U(X,Y) = X¹Y 1. The prices and income are px 4, py 16 and I = 160. If the government imposes a sales tax on good X that makes the price of X with the tax equal to p'x = 9. What is the new level of income that will keep Diana's utility unchanged? (a) 160 (b) 180 (c) 200 (d) 220 (e) 240 = Diana has utility function over goods X, Y that is given by U(X,Y) = X¹Y 1. The prices and income are px 4, py 16 and I = 160. If the government imposes a sales tax on good X that makes the price of X with the tax equal to p'x = 9. What is the new level of income that will keep Diana's utility unchanged? (a) 160 (b) 180 (c) 200 (d) 220 (e) 240 =
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Related Book For
Concepts in Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
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