Consider a consumer who is choosing how many of two goods to buy: Footballs and cricket balls. The consumer has an income of $20, and the cost of a football is $4 and a cricket ball is $2. (a) Write down the equation for the consumer’s budget constraint and graph it. (b) The government decides that football is evil and needs to be taxed. They introduce a 50% tax on each football sold. Rewrite and re-graph the budget constraint. (c) A new government is elected that hates all sports. They now tax both footballs and cricket balls at 50%. What does the budget constraint look like now?

Consider a consumer who is choosing how many of two goods to buy:
Footballs and cricket balls. The consumer has an income of $20, and
the cost of a football is $4 and a cricket ball is $2.

(a) Write down the equation for the consumer’s budget constraint and
graph it.

(b) The government decides that football is evil and needs to be
taxed. They introduce a 50% tax on each football sold. Rewrite and
re-graph the budget constraint.

(c) A new government is elected that hates all sports. They now tax
both footballs and cricket balls at 50%. What does the budget
constraint look like now?