Janet spends 5 of her income on gasoline and her utility


The government is considering increasing the tax on gasoline by $3 per gallon and has asked you to determine the impact on Janet's consumer surplus. Janet spends 5% of her income on gasoline and her utility function is Cobb-Douglas.
If her income is $1000 per week, what is her demand function for gasoline per week?

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Econometrics: Janet spends 5 of her income on gasoline and her utility
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