4 Budget set (modelling taxes) There are two goods, 1 and 2 with prices P and P2. You have a total income of m. a) Write down the equation of the budget set in terms of the quantities 21 and I 2 of the two goods, P1, P2, and m. Note also the maximum quantity of good 1 and good 2 that are affordable and draw the budget line. b) Suppose that the government takes t dollars from you, regardless of your consumption (this is called a lump-sum tax). How does that change your answers? c) Now suppose that the government adds a goods and service tax at rate T, so that if the seller charges p, you also have to pay tp to the government. How does that change your answers? Note that the slope of the budget line is unchanged. d) Finally, suppose that this goods and services tax is imposed on good 1 only. How does that change your answers