Suppose that the original budget constraint is p 1 x 1 +p 2 x 2 =m. a. What is the budget constraint if we tax the consumption of good 1 at a rate of t quantity tax? b. What would be the form of this budget constraint if we consider an income tax that raises the same amount of revenue?

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Suppose that the original budget constraint is p 1 x 1 +p 2 x 2 =m.
a. What is the budget constraint if we tax the consumption of good 1 at a rate of t
quantity tax?
b. What would be the form of this budget constraint if we consider an income tax that
raises the same amount of revenue?

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