1. (a) Using an appropriate diagram Illustrate and explain the welfare effects of a unit tax on a commodity within the framework of indifference curves analysis (2 marks)
2. (b) Illustrate on the same diagram, the welfare effects of a lump-sum tax that generates the same amount of tax revenue as in (a). (1.5 marks)
3. (c). Are the welfare effects the same? Is any of the taxes efficient? Explain why or why not. (1.5 marks)