Question: Alexander spends all his money on chocolate bars and songs
Alexander spends all his money on chocolate bars and songs that he downloads. The price of a chocolate bar and of a song is $ 1 each. His parents give him an allowance of $ 50 and four chocolate bars each month. Draw his opportunity set, assuming that he cannot sell the chocolate bars to his friends. How does the opportunity set change if he can sell the chocolate bars at the market price?
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