Margo has $2,100 withheld from her wages for state income taxes during 2014. in march of 2014, she paid $400 in additional taxes for her 2013 state tax return. her state income tax liability for 2014 is $2,600 and she pays the additional $500 when she files her 2014 state tax return in april of 2015. what amount should margo deduct as an itemized deduction for state income taxes on her 2014 federal income tax return, assuming she elects to deduct state and local income taxes? a. $2,100b. $2,500c. $2,600d. $3,000e. none of the above

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.