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2. Two goods, at and y, are perfect complements, and are best consumed in a ratio of one-to- one. (i) Using a diagram, show that

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2. Two goods, at and y, are perfect complements, and are best consumed in a ratio of one-to- one. (i) Using a diagram, show that if a tax is levied on consumption of good as, and the revenue is returned to the consumer directly (as an income supplement) no loss of utility is imposed on the consumer. (ii) What about the case when a: and y are perfect substitutes? Explain your reasoning, and give some intuition

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