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Suppose Carmela's income is $100 per week, which she allocates between sandwiches and books. Sandwiches cost $2 each. Books cost $10 each if she purchases
Suppose Carmela's income is $100 per week, which she allocates between sandwiches and books. Sandwiches cost $2 each. Books cost $10 each if she purchases between one and five books. If she purchases more than five books in a week, the price falls to $5 for the sixth book and all subsequent books. Draw the budget constraint. Is it possible that Carmela might have more than one utility maximizing solution?
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