Until 2012, California, Pennsylvania, and Texas required firms to collect sales taxes for online sales if the chain had a physical presence (a "brick" store as opposed to a "click" store) in those states. Thus, those states collected taxes on Best Buy's online sales, because it had stores in each of those states, but they did not collect taxes from Amazon.com because it did not have physical locations in those states. In states in which Amazon had to collect sales taxes, Amazon purchases fell 8% (Baugh, Ben-David, and Park, 2015) and Best Buy sales increased by 7.1%. Use an indifference-curve/budget-line diagram to show why Best Buy's sales rose after taxes were imposed on Amazon. a) Draw a new budget line representing the tax on Amazon.com. Label this line ' L ' 2 .' b) Draw a new indifference curve on which the consumer maximizes utility with the tax on Amazon.com. Label this curve ' 12 . c) Indicate the new optimal consumption bundle on the new budget line. Label this point ' C2