Question: Assume function given by a consumer has a utility u(x,y) = x+y with income of $100 and prices 1, p = 3 P1 P

Assume function given by a consumer has a utility u(x,y) = x+y

Assume function given by a consumer has a utility u(x,y) = x+y with income of $100 and prices 1, p = 3 P1 P = 1, P . Consider a $1 per-unit tax on good 1. Suppose a lump sum tax raises the same amount of income as the per-unit tax? How much income must it raise? (don't enter the $ symbol)

Step by Step Solution

★★★★★

3.52 Rating (145 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

With a utility function of uxy xy The consumers budget constraint is p1x p2y I where p1 3 p2 1 and I ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Determine the optimal order quantity and total annual inventory cost for cups in Problem 13-27 if the carrying cost is 5% of the price of a box of cups.

Determine the optimal order quantity and total annual inventory cost for boxes of stationery in Problem 32 if the carrying cost is 20% of the price of a box of stationery.

Determine the optimal order quantity and total annual inventory cost for cups in Problem 34 if the carrying cost is 5% of the price of a box of cups.

I questions 1,2, & 3 could be answered that would be amazing thanks so much! Question 1: Answer. Given the transformed function y = -f(x 1) + 3 , answer the following, showing your calculations: la}...

There are 10,000 identical individuals in the market for commodity X, each with a demand function given by Qdx=12-2Px and 1,000 producers of commodity X each with the function Qsx=20Px. i. Find the...

An element with mass 970 grams decays by 15 1 per minute How much of the element is remaining after 14 minutes to the nearest 10th of a gram

Assume a consumer has a utility function given by u(x,y) = x+y, with income of $100 and prices p1 = 1, p2 = 3. Consider a $1 per-unit tax on good 1. Suppose a lump sum tax raises the same amount of...

A monopolist has a cost function given by c(y) = y2 and faces a demand curve given by P(y) = 120 y. (a) What is its profit-maximizing level of output? 30. What price will the monopolist charge?...

Equilibrium real wages and optimal fiscal policy in the Dixit Stiglitz model. Consider the Dixit Stiglitz model of monopolistic competition exactly as we laid out in this chapter. Wholesale firms...

A bakery with a December 31 st year end purchased new equipment on October 31 st 2000 for $10,000. This was their first equipment purchase. Required: What are the tax consequences if the equipment is...

Using the FCFS rule for scheduling, the sequence is For the schedule developed using the FCFS rule, the total length of time taken to and sewing (process 1) and delivery (process 2) of each of the sui

Excel caculation on cascade mental health clinic

Linear Approximation and Differentials: (1 point) Estimate Af using the Linear Approximation and use a calculator to compute both the e f(x) = 3+x. Af a = 1. Ax=1 With these calculations, we have...

A business should invest in information security to protect their sensitive data, and maintain customer trust, and also because of information security the business avoids financial losses due to...

The system shown in Fig. 2.2 consists of a rope of initial length L under tension T and subjected to a transverse force f(x) (Figure 2.2). T w(x) T L f(x) Figure 2.2 Assuming that the deflection w(x)...

Create a process flowchart for any process that you complete either at work or in your personal life explaining your flowchart and your thinking. Any issues you found? Areas for change? Also, include...

Please help me solve this with the respected formuals. Thank you If the nominal interest rate is 7.6 percent, and the expected inflation is 2.7 percent, then using the Fisher Equation, the real...

Compare and contrast debt financing and equity financing as ways of starting a new business. Does one have an overall advantage over the other? What situation is more favorable to the use of debt...

Given an ordering cost of $200, a holding cost of $2 per unit, and a negligible lead time, examine the following demand patterns and predict which lot sizing technique would result in the lowest...

County Hospital orders syringes from a hospital supply firm. The hospital expects to use 40,000 per year. The cost to order and have the syringes delivered is $800. The annual carrying cost is $1.90...

What determines the choice of the smoothing constant for trend in an adjusted exponential smoothing model?

What are the key concepts that underlie the construction and interpretation of control charts?

Specifications for a part for a DVD player state that the part should weigh between 24 and 25 ounces. The process that produces the parts has a mean of 24.5 ounces and a standard deviation of .2...

Give two examples of unethical behavior for each of these areas: inspection, process control, process capability. For each, name the relevant ethical principle.