The U. S.federal government offers homeowners a tax deduction for their home loan interest payments. This reduction in taxes may have encouraged too many people to own homes. If the tax deduction caused people who otherwise would have rented to own, the tax deduction serves as a(n) incentive. 1. indirect 2. direct 3. complementary 4. unintended 5.neutral

David consumes two things: gasoline (g) and bread (b). david's utility function is u(g, b) = 10g^0.25 b^0.75. use the lagrange technique to solve for david's optimal choices of gasoline and bread as a function of the price of gasoline, p_g, the price of bread, p_b, and his income m. with recent decrease in the price of gasoline (maybe due to external shock such as shale gas production) does david increase his consumption of gasoline? for david, how does partial differential g/partial differential p_g depend on his income m? that is, how does david's change in gasoline consumption due to an increase in the price of gasoline depend on his income level? to answer these questions, find the cross-partial derivative, |partial differential^2 g/partial differential m partial differential p_g.