Question: Assume a consumer has a utility function given by u(x,y) = x+y, with income of $100 and prices p1 = 1, p2 = 3. Consider

Assume a consumer has a utility function given by u(x,y) = x+y, with income of $100 and prices p1 = 1, p2 = 3. Consider a $1 per-unit tax on good 1. Suppose a lump sum tax raises the same amount of income as the per-unit tax? How much income must it raise?

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