Graph the Budget Constraint for Px = 2, Py =

question 22

Essay

Graph the budget constraint for Px = 2, Py = 3, and I = 1500. Measure units of X along the horizontal axis and units of Y along the vertical axis.

---

Definitions:

Regressive Tax

A tax system where the tax rate decreases as the taxable amount increases, placing a higher burden on lower-income earners relative to their income.

Income Groups

Categories of people classified according to the level of their income, often used in socio-economic and market research to analyze spending habits, needs, and trends.

Lump-Sum

A single payment made at a particular time, as opposed to a series of smaller payments or installments.

Tax System

The structured way in which taxes are levied in a country, including the collection, management, and expenditure of taxed income.