Tops and Star Market are competing grocery stores. Tops advertises that the basket purchased by our average

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Tops and Star Market are competing grocery stores. Tops advertises that "the basket purchased by our average customer would cost 5% more at Star Market." The purpose of this problem is to investigate whether that's a good reason to shop at Tops.

a. Suppose that apples are more expensive at Tops than at Star, while bananas are more expensive at Star than at Tops. Cassia can shop at either store. Draw her Tops and Star budget lines on a single graph.

b. It happens that Cassia is equally happy shopping at either store. Incorporate this information in your graph.

c. Mark the baskets that Cassia buys at Tops and at Star; call them T and S. If she tried to buy basket T at Star, could she afford it? What if she tried to buy basket S at Tops?

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