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3) During a national emergency, the government issues coupons for the right to purchase goods 1 and 2: any buyer who wants to purchase a
3) During a national emergency, the government issues coupons for the right to purchase goods 1 and 2: any buyer who wants to purchase a unit of either good must not only pay its price in money, but also in coupons. Suppose the unit prices of goods 1 and 2 in money are p1 = $3 and p2 = $1, and their unit prices in coupons are c1 = 1 and C2 = 2. A typical citizen has a monetary income of $ 120 and gets 90 coupons from the government. By default, we assume that both goods (and the money, and coupons required to buy them) are perfectly divisible. a) Illustrate the typical citizen's budget set assuming that coupons are personalized and can only be used by the person they have been issued to. b) Now suppose that coupons are anonymous, and one can buy and sell them in the black market. Currently, the price of one coupon in the black market is $1. Illustrate the new budget set on your graph from (a)
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