2. Suppose that the price of soda remains at $1 a can but the price of coffee...
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2. Suppose that the price of soda remains at $1 a can but the price of coffee rises to $3 a cup. Draw Amy’s new budget line. If she buys 6 cans of soda, what is the maximum number of cups of coffee she can buy in a week? Has the relative price of coffee changed?
Use Table 1, which shows Ben’s utility, to work Problems 3 and 4.
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Related Book For
Foundations Of Microeconomics
ISBN: 9780063076280
7th Global Edition
Authors: Bade, Robin;Parkin, Michael
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