題組內容

二、shortanswer(簡答題)(10%)
Suppose an individual derives his utility from spending $1000 income on two goods x and y. His utility function is U(x,y) = √xy. The prices of two goods are Px = 10 and Py = 20.

(c) If the government wants to maintain the individual's utility level to be the same as the original level before tax, how much income will the government have to compensate the consumer or take away from him? (4%)