Question: Suppose we plot good X consumption on the horizontal axis, and consumption for good Y on the vertical axis. Suppose that consumer's income, I is
Suppose we plot good X consumption on the horizontal axis, and consumption for good Y on the vertical axis.
Suppose that consumer's income, I is $
Given that the maximum consumption for good X where none Y is consumed is
The maximum consumption for good Y where none X is consumed is
Suppose that the current prices for these goods, are given by P subscript x space equals space space a n d space P subscript y space equals space
Now suppose that the government plans to impose a tax to limit maximum X consumption to
What is the tax in percentage that can achieve this?
Important!
Express your answer in percentage and roundup to decimal points.
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