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Mike has a budget of $12 to spend on beer and chicken. A bottle of beer costs $6 and a piece of chicken costs $2
Mike has a budget of $12 to spend on beer and chicken. A bottle of beer costs $6 and a piece of chicken costs $2 where his optimal bundle is B=1 and C = 3.
The government imposes a tax on beer due to a health campaign, thereby increasing the price by 50%. What is the optimal consumption bundle now if Mike's consumption of beer and chicken can be a non-integer value?
B = ?
C = ?
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