Suppose that a budget equation is given by p 1 x 1 + p 2 x 2

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Suppose that a budget equation is given by p₁x₁ + p₂x₂ = m.The government decides to impose a lump-sum tax of u, a quantity tax on good 1 oft, and a quantity subsidy on good 2 of s. What is the formula for the new budget line?

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Intermediate Microeconomics

ISBN: 978-0393934243

8th edition

Authors: Hal R. Varian

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Question Posted: Feb 20, 2019 02:21 PM

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Suppose that a budget equation is given by p 1 x 1 + p 2 x 2

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Intermediate Microeconomics

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