Question 2. It is election season and Charles is deciding who to vote for. Both candidates are proposing an increase in taxes. Candidate A is proposing a quantity tax (which affects only the price of the goods) and candidate B is proposing a lump sum tax (which affects only the consumer's income). Charles has $120 that he can spend on x1 and x2. The price of x1 is 4 and the price of x2 is 3.

a) Draw Charles's budget constraint before the implementation of any taxes. Make sure to label the axes and slope of the budget line.

b) Suppose candidate A proposes a quantity tax on x1 of $2. On the same graph above, show how this changes Charles's budget constraint. Make sure to label the axes and slope of the budget line. Will Charles be able to consume the bundle (10, 10) with this tax? Show your work.

c) Suppose candidate B proposes a lump-sum tax of $20. On the same graph above show how this changes Charles's budget constraint. Make sure to label the axes and slope of the budget line. Will Charles be able to consume the bundle (10, 10) with this tax? Show your work.