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(a) The diagram below shows a consumer's budget line between food (F) and all other goods (AOG). The consumer has a budget of $1000, which

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  1. (a) The diagram below shows a consumer's budget line between "food" (F) and "all other goods" (AOG). The consumer has a budget of $1000, which is the maximum that can be spent on F or AOG. With the diagram as drawn, we are effectively setting the price of a unit of F and a unit of AOG at $1.
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