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7) By how much is the price paid by consumer increasing after the $3 tax is imposed? a)1 b)2 c)3 d)6 8) How much money will the government collect in taxes? Use the following information to answer questions 9 and 10. The utility function is given by U(x,y)=4(xy)0.5+10. The price of good x is $2, the price of good y is $6 and the consumer has $48 to spend. Assume good y is on the vertical axis. 9)What is the Marginal rate of substitution of y for x when x=2 and y=4? 10)What is the slope of the budge line?
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