he budget equation is p1x1 +p2x2= m. The government imposes a lump sum tax of u, a

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he budget equation is p1x1 +p2x2= m.

The government imposes a lump sum tax of u, a quantity tax on x1 of t, and a quantity subsidy on x2 of s.

The new formula is (p1+t)x1 +(p2-s)x2= mu.

How would you graphically draw this new formula?

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Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Mar 18, 2024 05:05 PM

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he budget equation is p1x1 +p2x2= m. The government imposes a lump sum tax of u, a

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Microeconomics An Intuitive Approach with Calculus

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