Question
he budget equation is p1x1 +p2x2= m. The government imposes a lump sum tax of u, a quantity tax on x1 of t, and a
he budget equation is p1x1 +p2x2= m.
The government imposes a lump sum tax of u, a quantity tax on x1 of t, and a quantity subsidy on x2 of s.
The new formula is (p1+t)x1 +(p2-s)x2= mu.
How would you graphically draw this new formula?
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
