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# A consumer can consume good 1 at p1 up to 1x , and then has to pay a tax t on the consumption of good 1 > 1x . The corresponding budget set is shown in figure 2.5: X -

A consumer can consume good 1 at p1 up to 1x , and then has to pay a tax t on the consumption of good 1 > 1x . The corresponding budget set is shown in figure 2.5:

**Transcribed Image Text:**

## X₁ - P₁ P2 P₁+t P2 There is a kinked point in the budget line. Q1: Can you write out the equation for this budget line? X₁ - P₁ P2 P₁+t P2 There is a kinked point in the budget line. Q1: Can you write out the equation for this budget line?

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## P1 Q1 P2 Q2 I Where I is the total income and P1 and View the full answer

**Related Book For**

## Essentials of Business Statistics Communicating With Numbers

ISBN: 978-0078020544

1st edition

Authors: Sanjiv Jaggia, Alison Kelly

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