What if there is a situation with two goods and an income of b>0. How does the lump sum ta T which is levied on every person independent of his or her income or market behavior affect the budget constraint? a. the budget constraint rotates upwards at point (0, b/P2) b. the budget constraint rotates inwards at point (0, b/P2) c. the budget constraint shifts outwards in a parallel way d. the budget constraint shifts inwards in a parallel way
What if there is a situation with two goods and an income of b>0. How does the lump sum ta T which is levied on every person independent of his or her income or market behavior affect the budget constraint? a. the budget constraint rotates upwards at point (0, b/P2) b. the budget constraint rotates inwards at point (0, b/P2) c. the budget constraint shifts outwards in a parallel way d. the budget constraint shifts inwards in a parallel way
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Theory Of Consumer Choice
Section: Chapter Questions
Problem 1QR
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