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Draw a budget line and then draw an indifference curve to illustrate the satisfaction-maximizing choice associated with two products, Good 1 & Good 2. Suppose

Draw a budget line and then draw an indifference curve to illustrate

the satisfaction-maximizing choice associated with two products, Good 1 & Good 2.

Suppose that Good 1 is on X-axis and rationed, i.e., the consumer is allowed to buy

less than the equilibrium quantity. Use your diagram to demonstrate that the consumer

is likely to be worse off and explain in words.

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