Question
Asked Apr 7, 2019
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q 13. An agent consumes goods x and y, with prices Px=$5 per unit and Py=$8 per unit. the consumers income is I=$48. The government imposes a tax of $1 per unit on good x. what is the new equation for the budget constraint? 

a) y=6-(5/8)x

b)y=6-.75x

c) y=48-8x

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Expert Answer

Step 1

The given information:

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Step 2

Budget constraint equation:

Budget constraint equatio...

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