2. Suppose we have a 2- good economy; clothing and food. Food is graphed on the Y axis and clothing is graphed on the X axis.

a.If prices and income double, what will happen to the budget line?

b. Express the slope of the budget line in terms of the prices of the 2 goods (P_Cand P_F)

c. What happens to the budget line if a tax of 10% is placed on the purchase of clothing?

d. What is the slope of the budget line after the introduction of the tax?