12. Ben allocates his lunch budget between two goods, pizza and burritos. a. Illustrate Bens optimal bundle

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12. Ben allocates his lunch budget between two goods, pizza and burritos.

a. Illustrate Ben’s optimal bundle on a graph with pizza on the horizontal axis.

b. Suppose now that pizza is taxed, causing the price to increase by 20 percent. Illustrate Ben’s new optimal bundle.

c. Suppose instead that pizza is rationed at a quantity less than Ben’s desired quantity. Illustrate Ben’s new optimal bundle.

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Microeconomics

ISBN: 9780132080231

7th Edition

Authors: Robert S. Pindyck, Daniel L. Rubinfeld

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Question Posted: Oct 26, 2024 04:00 AM

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12. Ben allocates his lunch budget between two goods, pizza and burritos. a. Illustrate Bens optimal bundle

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Microeconomics

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