Suppose that the consumer's utility function is given by u(c 1 , c 2 ) c 1 50 c 2 50 Using a Lagrangian, solve algebraically for the consumer's optimal choice of c 1 and c 2 as functions of P1, P2, t2, and Y Graphically show how, for this particular utility function, the optimal choice changes due to the imposition of the sales tax on good 2

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Question: Suppose that the consumer's utility function is given by u(c 1 , c 2 ) = c 1 .50 c 2 .50 . Using a

Suppose that the consumer's utility function is given by u(c_{1 ,}c₂) = c₁^.50 c₂^.50 . Using a Lagrangian, solve algebraically for the consumer's optimal choice of c₁ and c₂ as functions of P1, P2, t2, and Y . Graphically show how, for this particular utility function, the optimal choice changes due to the imposition of the sales tax on good 2.

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