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Suppose Shabna has a fixed income and she can consume only two goods and they are bread and butter. Suppose the government has imposed a

Suppose Shabna has a fixed income and she can consume only two goods and they are bread and butter. Suppose the government has imposed a tax on butter, how this will impact her consumption bundle. Support your answer with proper graph(s) showing equivalent variation and the governments tax revenue. Also, explain your understanding of equivalent variation.

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