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.

(b) If now the government imposes a unit tax $10 on x, how will the individual's optimal consumption bundle change? Will him become better or worse off? (3%)