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A Burritos C B line 2 nilein line 1 0 Coronas The above diagram shows Sara's utility maximization a. Explain why point A is the
A Burritos C B line 2 nilein line 1 0 Coronas The above diagram shows Sara's utility maximization a. Explain why point A is the utility maximizing choice in budget line 1.~ b. Explain the meaning of the move of budget line 1 to budget to line 2~ c. Explain the meaning of point B in the diagram d. In the diagram show the total effect, the substitution effect and the income effect. Is this a normal or inferior good?~ e. If we assume Coronas are Giffen goods, how would the diagram look like?~
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