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1. Suppose Ecoland imposed an excise tax of $0.1 on each paper coffee cup last year during its waste reduction campaign. You must relate your

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1. Suppose Ecoland imposed an excise tax of $0.1 on each paper coffee cup last year during its waste reduction campaign. You must relate your explanation to every line, point, and change in the graph according to lecture discussion in order to earn marks. (a) Your friend Wastine plans to consume 500 cups of coffee this year with the excise tax and some other goods. She is lobbying the government to replace the excise tax with a $50 lump sum tax. Add whatever necessary to the first diagram provided in this question to illustrate the before and after excise tax situations in order to help you explain the motivation behind her action. (b) Your cousin Indiva has the same income as Wastine and also plans to consume 500 cups of coffee this year with the excise tax and some other goods. Add whatever necessary to the second diagram provided in this question to help you explain why Indiva is indifferent between the two taxes. 1. Suppose Ecoland imposed an excise tax of $0.1 on each paper coffee cup last year during its waste reduction campaign. You must relate your explanation to every line, point, and change in the graph according to lecture discussion in order to earn marks. (a) Your friend Wastine plans to consume 500 cups of coffee this year with the excise tax and some other goods. She is lobbying the government to replace the excise tax with a $50 lump sum tax. Add whatever necessary to the first diagram provided in this question to illustrate the before and after excise tax situations in order to help you explain the motivation behind her action. (b) Your cousin Indiva has the same income as Wastine and also plans to consume 500 cups of coffee this year with the excise tax and some other goods. Add whatever necessary to the second diagram provided in this question to help you explain why Indiva is indifferent between the two taxes

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