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Y5 Let there be two goods 1 and 2. Per unit price of 1 is $2 and per unit price of 2 is $4. Your
Y5
Let there be two goods 1 and 2. Per unit price of 1 is $2 and per unit price of 2 is $4. Your income is $20. The government imposes uniform sales tax levied at a rate of 5 percent. Estimate the equivalent of income loss and show the change in the budget line using a graph. Ans: $0.95. The budget line parallelly shifts inward.
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