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Helen's preferences over CDs (C) and sandwiches (S) are given by U(S, C) = SC + 10(S + C), with

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Helen's preferences over CDs (C) and sandwiches (S) are given by U(S, C) = SC + 10(S + C), with MUC = S + 10 and MUS = C + 10. If the price of a CD is $9 and the price of a sandwich is $3, and Helen can spend a combined total of $30 each day on these goods, find Helen's optimal consumption basket.

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See the graph below The fact that Helens indifference curves touch the axes should immediately make …View the full answer


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Related Book For  answer-question
Microeconomics

Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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Question Posted: March 17, 2016 04:50:07
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