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Kumar spends all his monthly income of $20 on two goods, rice ( x ) and cooking oil ( y ). The price of oil
Kumar spends all his monthly income of $20 on two goods, rice (x) and
cooking oil (y). The price of oil is $1 per liter. Rice can be purchased at
a government-run store and also on the free market. The price of rice
is $1 per kilogram at the government store but he can only buy up to
10 kgs. In the free market, the price of rice is $2 per kg. Draw Kumar's
budget constraint assuming that the goods are divisible.
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