Suppose a consumer has a budget of $100 to spend on concerts (price = $6) and carnival
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Suppose a consumer has a budget of $100 to spend on concerts (price = $6) and carnival rides (price = $2). For each of the following pairs of points in the figure below, indicate whether the pair (i) satisfies the budget constraint, (ii) satisfies the equimarginal rule, or (iii) is the best affordable bundle.
a. Points a and e.
b. Points b and h.
c. Points c and f.
d. Points d and g.
e. Points d and e.
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Microeconomics Principles Applications And Tools
ISBN: 9780134078878
9th Edition
Authors: Arthur O'Sullivan, Steven Sheffrin, Stephen Perez
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