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3. (20 pts) Consider two time periods t and t with the income levels n and n. The consumption level for each period is
3. (20 pts) Consider two time periods t and t with the income levels n and n. The consumption level for each period is c and c and the price is assumed to be 1 for both of the periods. If n > c, write down the consumption level in the second period and also show the consumption bundle on the graph. (Use these notations while deriving the budget line!)
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