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0. Hasmi has an income of $100. a. Draw their budget constraint when the price of A is $1 and the price of B is

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0. Hasmi has an income of $100. a. Draw their budget constraint when the price of A is $1 and the price of B is $2. (Put quantity of B on the vertical axis.) b. The government decides to tax Hasmi's income by 20% while subsidizing the price of B by 50%. On the same graph, draw Hasmi's new budget constraint. c. Based on your graph above, explain briefly whether it is possible that the amount of tax revenues the government receives from Hasmi can equal the total amount paid in subsidies for Hasmi's consumption of B

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