Marc has a budget of $20 a month to spend on lattes and e-books. The price of
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Marc has a budget of $20 a month to spend on lattes and e-books. The price of latte is $5 a bottle, and the price of an e-book is $10. Figure A13.4 illustrates his preferences. Use Figure A13.4 to work Problems.
If the price of an e-book falls to $5 but the price of a latte and Marc’s budget remain unchanged, what quantities of lattes and ebooks does Marc now buy? What are two points on Marc’s demand curve for e-books?
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Marc now buys 3 ebooks and 1 latte One point on Marcs de...View the full answer
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