please teach explain step by step, I do not know notations, Question!: / XP₂((1-x²) P₁_V[p₁w) = α²² (1-α) ¹-a wPia PiaWhat is the highest lump sum tax that would be equivalent to princreasing to pi in terms of utility?1-AAnswer: u(x₁, x₂) = x₁²x²₂²²* based on the info given. this can be checked.via marshallian demands:29 (p, w) = =&wPitwo ways to answer:a) find EV using Hicksian.EV =CP²U²u = h₁ lp₁u) b₂[p₁u) = ((1-2) pijanаргP₂-(1-α) ²a pl1-α"hilp, P₂, vtp², wt) dpdp,u²=dwEV = αª (1-α)1=a Wa-pa piaAªpaw] [dt_sa=PºP₁'P₁IndEV=W² [²²][²] = [X][4]Jp²I][[- AWpa2Klik d2₂ (p₁w) = (1-x²) WP₂(1-α) imaX²²-(1-α)IndpaαX"P₁²αP₁pa-piapa-1 dp,w p²-P₁PrPia=W) 1- PP₁₁=игра11a-7-pia

Equivalent variation is the concept used to adjust the consumer's income in such a way that he…

Question!: in = hilp₁u) n₂(p₁u) = ((1-α)P₁) ªu. арг ((1-x)P₁ V[p₁w) = α²² (1-α)1-a w Pia Pia What is the highest lump sum tax that would be equivalent to P₁ increasing to pi in terms of utility? 1-A Answer: u(x₁, x₂) = x₁²x₂²²* based on the info given this can be checked. via marshallian demands: 2G (D,W) = W 26₂ (P₁W) = (1-9) W

Question!: in = hilp₁u) n₂(p₁u) = ((1-α)P₁) ªu. арг ((1-x)P₁ V[p₁w) = α²² (1-α)1-a w Pia Pia What is the highest lump sum tax that would be equivalent to P₁ increasing to pi in terms of utility? 1-A Answer: u(x₁, x₂) = x₁²x₂²²* based on the info given this can be checked. via marshallian demands: 2G (D,W) = W 26₂ (P₁W) = (1-9) W

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter12: The Partial Equilibrium Competitive Model

Section: Chapter Questions

Problem 12.10P

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iven the following demand and supply functions Qd = 220−5P Qs = −20+3P if a per unit tax of 8 is imposed on the commodity, i. 1860 2575 i.determine the equilibrium price and quantity before the imposition of the tax. ii. Determine the equilibrium price and quantity after the imposition of the tax. iii. compare the results in (i) and (ii). error_outlineHomework solutions you need when you need them. Subscribe now.arrow_forward Question Asked Sep 2, 2020 1 views Given the following demand and supply functions Qd = 220−5P Qs = −20+3P if a per unit tax of 8 is imposed on the commodity, i. 1860 2575 i.determine the equilibrium price and quantity before the imposition of the tax. ii. Determine the equilibrium price and quantity after the imposition of the tax. iii. compare the results in (i) and (ii). iv. graph the results in (i) and (ii). Please I need solution for only iv Thank you