Hi, I was studying for the case below, which I tried to prove that the person should consume less scones and more salad. However, how would I graphically prove that the indifference curve shifts upwards? Also, is the original bundle also affordable? I'm confused in whether she will be worse off or not.

Janet consumes two types of food, blueberry scones and quinoa salad. At the current price of $2 per scone, Janet buys 200 scones per year. Worried about increasing diabetes, the state governor imposes a $0.25 sales tax on scones (and on all other sweet bakery and pastry products). To avoid losing the votes of pastry consumers like Janet, who feel impoverished by the new tax, the governor also mails a $50 check to each state resident (including Janet).

a) Will Janet be worse off after the governor implements this new policy?

b) Assume all consumers in the state are identical to Janet and thus make the same consumption choices as Janet, both before and after the policy change. Does the government's revenue increase or decrease after the new policy is implemented?