Question: Consider a consumer whose utility is given by u(x, y) = x + y. She spends her income, given by I=10, on two consumption goods,

Consider a consumer whose utility is given by u(x, y) = x + y. She

spends her income, given by I=10, on two consumption goods, x and y,

the prices of which are given, respectively, by px= 2 and py=1 . The

government is levying a (per-unit) tax on y, denoted by t. Characterize

the excess burden as a function of t.

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