Q1) The standard budget constraint may be written as p₁x₁ + p₂x₂ = Y
where Y is income, p₁ and p₂ are the prices of goods x₁ and x₂ respectively. x₁ and x₂ are the quantity of goods consumed. For each of the below scenarios, mathematically define the modified budget constraint. Then for each case, graph the original and modified budget constraint on a single graph.

(a) The government subsidies good x₂ by s dollars.

(b) The government issues a 10% tax on both goods.

(c) The government issues a onetime stimulus payment of $600.