*3.1 What is the effect of a 50% income tax on Dales budget line and opportunity set?...

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*3.1 What is the effect of a 50% income tax on Dale’s budget line and opportunity set?

3.2 What happens to a consumer’s optimal choice of goods if all prices and the consumer’s income double? (Hint: What happens to the intercepts of the budget constraint?)(p. 18)

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