5.15. Dave consumes only two goods, coffee and doughnuts. When the price of coffee falls, he buys...

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5.15. Dave consumes only two goods, coffee and doughnuts. When the price of coffee falls, he buys the same amount of coffee and more doughnuts.

a) On an optimal choice diagram (with budget lines and indifference curves), illustrate this pattern of consumption.

b) Is this purchasing behavior consistent with a quasilinear utility function? Explain.

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Microeconomics

ISBN: 9780470563588

4th Edition

Authors: David Besanko, Ronald Braeutigam

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Question Posted: Oct 15, 2024 03:01 AM

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5.15. Dave consumes only two goods, coffee and doughnuts. When the price of coffee falls, he buys...

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Microeconomics

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