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3. There are three goods in the economy. A consumer's indirect utility function is given by I V (PI, p2, p3, !) = 1/3 1/3 1/3' P1 P2 P3 where p; is the price of good i per unit for i = 1, 2, 3. Let [pi, p2, p9] = [10, 20, 30] be the vector of initial prices and I = 10, 000. The govern- ment wants to impose a sales tax of 30% on the purchase of each unit of each good. (a) Derive CV and EV. (b) What is the total tax revenue under the sales tax regime? Suppose that the instead of the sales tax, the government has the option of imposing the lump-sum tax that is equal to the amount of the total sales tax revenue. Which tax regime would the individual prefer