1. The original budget line is defined by pic, it p2 2 1. The government decides to simultaneously impose a lump-sum income tax of TE (0, I), a quantity sales tax on good 1 of t > 0 dollars, and a quantity subsidy on good 2 of s E (0, p2) dollars. (a) Write down an equation for the new budget line. (2 points) (b) Sketch the original and new budget lines in three separate graphs. Clearly label the intercepts and slopes of each line. For each graph, specify the conditions that apply to the parameter values for that case. (3 points)