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Sam spends $12/weekon orange and apple juice. Orange juice costs $2/cup, apple juice costs $1/cup. Sam views 1 cup of orange juice as a perfect
Sam spends $12/weekon orange and apple juice. Orange juice costs $2/cup, apple juice costs $1/cup. Sam views 1 cup of orange juice as a perfect substitute for 3 cups of apple juice.Suppose the price of apple juice rises to $2/cup, while the price of orange juice remains constant. How much of an additional income would Sam need to afford his original consumption bundle ?
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