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7. You consume only coke and pasta. One day, the price of coke goes up, the price of pasta goes down, and you are just
7. You consume only coke and pasta. One day, the price of coke goes up, the price of pasta goes down, and you are just as happy as you were before the price changes.
a. Illustrate this situation on a graph.
b. How does your consumption of the two goods change? How does your response depend on income and price effects?
c. Can you afford the bundle of coke and pasta you consumed before the price changes?
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