The government imposes a lump sum tax. What happens to the budget line? (Select all that apply). The slope becomes steeper. The slope becomes flatter. The horizontal intercept moves to the right. The horizontal intercept moves to the left. The vertical intercept moves to up. The vertical intercept moves down.

The government imposes a lump sum tax. What happens to the budget line? (Select all that apply). The slope becomes steeper. The slope becomes flatter. The horizontal intercept moves to the right. The horizontal intercept moves to the left. The vertical intercept moves to up. The vertical intercept moves down.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter5: Income And Substitution Effects

Section: Chapter Questions

Problem 5.8P

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