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Consider two goods, x and y, and suppose that the prices of these goods are given by and , respectively. Suppose that a consumer's income
Consider two goods, x and y, and suppose that the prices of these goods are given by and , respectively. Suppose that a consumer's income is given by . What can be said about the bundle ?
This bundle is affordable, with income left over.
This bundle is exactly affordable, with no income left over.
This bundle is not affordable.
Cannot be determined without information concerning the consumer's preferences.
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