The most recent financial statements for crosby, inc., follow. sales for 2018 are projected to grow by 20 percent. interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales.

crosby, inc.

2017 income statement

sales $ 980,760

costs 792,960

other expenses 20,060

earnings before interest and taxes $ 167,740

interest paid 14,740

taxable income $ 153,000

taxes (21%) 32,130

net income $ 120,870

dividends $ 39,250

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.