Suppose that a budget equation is given by p 1 x 1 + p 2 x 2
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Suppose that a budget equation is given by p1x1 + p2x2 = m.The government decides to impose a lump-sum tax of u, a quantity tax on good 1 oft, and a quantity subsidy on good 2 of s. What is the formula for the new budget line?
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