2. Consider a society with only two people one rich and one poor-who have the same util- ity functions. These utility functions exhibit diminishing marginal utility. Suppose that taxes are set such that the total amount of utility that each person loses is the same. Does it follow that the tax will be progressive? Explain.

If the social welfare function produces concave social welfare indifference curves, social welfare can be increased by reallocating income between households if their marginal utilities of income differ.   TRUE OR FALSE

Consider the following utility functions: Eleanor Rigby !" #, % = #%/10 Father McKenzie !* #, % = 100#2%2; where # is one kilogram of apples and % one kilogram of bananas. 1) Sketch all the bundles that Eleanor finds indifferent to having 8kg of apples and 2kg of bananas. 2) Sketch all the bundles that Eleanor finds indifferent to having 6kg of apples and 4kg of bananas. 3) Sketch all the bundles that Father McKenzie finds indifferent to having 8kg of apples and 2kg of bananas.

Hello, I am not understanding this practice problem. There isnt no figure missing.

Explain briefly the intuition behindthe fundamental theorems of welfare..

What is the exact change in Jackie's consumer surplus. A+B7 How large is area 87 In this example, assume the price of music tracks (in pounds) increases from £0.6 to £1, as shown in the figure. Also, let Y be Jackie's income, which is £30. State Jackie's uncompensated demand function for music tracks given her initial budget Jackie has a utility function where is music tracks and is live music. Let py be the price of music tracks and let the price of live music be normalized to one If income, Y, is 30, what is Jackie's uncompensated demand for music tracks, 9₁? Jackie's uncompensated demand for music tracks, q₁, as a function of p Pounds pertrac 0.6 AA 6 10 Demand Music tracks 2

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1-a Answer following questions by using the Cobb-Douglas utility function u= xx and assuming that the price of good 1 is pi and good 2 is p2. Assume 00, p2>0, and income I>0.

can you please explain question d for me and solve it