Question: Lucy views Bayer aspirin and Tylenol as perfect substitutes. Initially the aspirin is cheaper. However, a price increase makes aspirin more expensive than Tylenol. Show
Lucy views Bayer aspirin and Tylenol as perfect substitutes. Initially the aspirin is cheaper. However, a price increase makes aspirin more expensive than Tylenol. Show the substitution, income, and total effect of this price change in a diagram?
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Initially when Bayer aspirin is cheaper on budget line L 1 only aspirin is consumed at e 1 on ind... View full answer
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