Goolsbee (2000) found that people who live in high sales tax areas are much more likely than other consumers to purchase over the Internet, where they are generally exempt from the sales tax if the firm is located in another state. The National Governors Association (NGA) proposed a uniform tax of 5% on all Internet sales. Goolsbee estimates that the NGA's flat 5% tax would lower the number of online customers by 18% and total sales by 23%. Alternatively, if each state could impose its own taxes (which average 6.33%), the number of buyers would fall by 24% and spending by 30%. Use an indifference curve-budget line diagram to illustrate the reason for his results. (Hint: review Solved problem 4.4) The figure to the right illustrates a typical consumer's budget line with no Internet sales tax. Carefully read all the following steps before attempting the graphing portion of this exercise. Assume the consumer's preferences satisfy the usual assumptions. 1.) Use the three point curved line drawing tool to draw an indifference curve that illustrates the consumer optimizing utility before the Internet sales tax. Label this curve m 2.) Use the point drawing tool to indicate the equilibrium consumption bundle. Label this point 'e, ". 3.) Use the line drawing tool to draw the consumer's new budget line with and Internet sales tax. Label this line LT, 4.) Use the three point curved line drawing tool to draw a new indifference curve that illustrates the consumer optimizing utlity with the Internet sales tax. Label this curve 'IT'. 5.) Use the point drawing tool to indicate the new equilibrium consumption bundle. Label this point 'e;". Carefully follow the instructions above, and only draw the required objects. Internet sales All other sales