An Agent Consumes Goods X and Y, with Prices P_x

Multiple Choice

An agent consumes goods x and y, with prices P_x = $5 per unit and P_y = $8 per unit. The consumer's income is I = $48. The government imposes a tax of $1 per unit on good x. What is the new equation for the budget constraint?

A) y = 6 - (5/8) x
B) y = 6 - .75x
C) y = 8 - (6/8) x
D) y = 48 - 8x