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En. Prudence was maximising her utilitj,F subject to her budget constraint. Then prices changed. After she re-adjusted her optimal consumption bundle in response to the

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En. Prudence was maximising her utilitj,F subject to her budget constraint. Then prices changed. After she re-adjusted her optimal consumption bundle in response to the price change, she 1was strictly better off. Therefore, the new optimal bundle casts inure at the old prices than the old bundle did

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