REVIEW QUESTIONS QUESTION ONE M2 V ( P, M)=- Given indirect utility function of the nature 4P P2 i. Derive the ordinary demand functions ii. Derive the associated expenditure functions iii. Suppose M = 100 P1= 5 and P2= 4, calculate the total effec t, substitution effect and income effect as a result of chang es in P and M QUESTION TWO The beer market in Tanzania is currently at equilibrium selling 10 m illion bottles per week of Tshs 80 per bottle. It has been establishe d that a percentage change in price results in a 0.5 percent change in the demand for beer and 0.8 percentage change in its supply, co nsistent with the laws of demand and supply. The government has announced at a Tshs 10 tax for every bottle of beer sold in order to raise revenue. The tax burden rest on both consumers and produc ers of beer. Required a) Define the terms "Consumer surplus" and "Producer surplu s". With the help of well labeled diagrams, show that the co