Illustrate on the same graph (with good 2 on the vertical axis):

(i) the consumer's budget line without any tax (label this B)I = P₁C₁+ P₂C₂

(ii) the consumer' budget line with an income tax (label this Bt),(1-t)I = P₁C1+ P₂C₂

(iii) the consumer's budget line with a sales tax on good 2,I = P₁C1+ (1+R)P₂C₂ under the assumption in (d) that it will end up raising the same amount of revenue as the income tax (label this Br).T = R/2(1+r) and R = 2t/1-2t

Be sure to mark the vertical intercept and the horizontal intercept of each budget line with their (variable) values. Make sure the relative magnitude of intercept values are correct and provide an argument for the relative magnitude of the intercept values corresponding to the budget lines of each tax regime.