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Karen is at the supermarket buying her weekly groceries. Since she is on a budget, she wants to limit her purchases to canned soup (
Karen is at the supermarket buying her weekly groceries. Since she is on a budget, she wants
to limit her purchases to canned soup (
C) and prepackaged s
alad (S). A can of soup costs $1.2
and a tub of salad costs $2. Her utility function is expressed as U(C,S) = C
S. Given that she
has only $10 to spend, derive Karen's optimal consumption.
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