Justin buys water (W) at $2 per gallon and food (F) at $10 per unit. Justin has income of $50. Suppose that the government imposes a tax on water of $1 for each gallon consumed beyond 10 gallons. Graph Justin's budget constraint with water on the y-axis and food on the x-axis.
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The horizontal intercept is $50/$10 = 5...View Answer
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