Question: This is all the information given. Only need part 10.1B(a-c) struggling with the math if you could show steps involved. 10.1* Consider a good x,

This is all the information given. Only need part 10.1B(a-c) struggling with the math if you could show steps involved.

This is all the information given. Only need part 10.1B(a-c) struggling with

10.1* Consider a good x, in a model where a consumer chooses between x, and a composite good x2. A. Explain why the following either cannot happen or, if you think it can happen, how: a. Own-price demand for a good is perfectly vertical but taxing the good produces a deadweight loss. b. Own-price demand is downward sloping (not vertical) and there is no deadweight loss from taxing the good. B. Now suppose that the consumer's tastes can be summarized by the CES utility function U(x1, X2) = (0.5x, P + 0.5x2 P)-1/P. a. Are there values for p that would result in the scenario described in A(a)? b. Are there values for p that would result in the scenario described in A(b)? c. Would either of these scenarios work with tastes that are quasilinear in x

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