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Assume a consumer can consume either carrots or bananas. You know that, initially, the price of carrots is $3 per pound and the price of
Assume a consumer can consume either carrots or bananas. You know that, initially, the price of carrots is $3 per pound and the price of bananas is $2 per pound. You also know that this consumer is currently maximizing their utility by consuming 6 pounds of carrots and 8 pounds of bananas, labeled below on IC 1/Budget Line 1.
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