There are two goods in the economy beer and chicken wings


There are two goods in the economy beer and chicken wings. The consumer has an income of $12,229. The government believes that beer is bad for you so it is thinking of imposing a tax of 106% on beer. The price of one beer is 128 and the price of one order of chicken wings is 17. By how much does the maximum amount of beer that the consumer can afford changes after the tax is imposed? (If she can afford 10 more units input 10 as you answer if she can afford 10 less units input-10 and so on) 

 

 

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Microeconomics: There are two goods in the economy beer and chicken wings
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