Maria has budgeted a total of $9 to spend on two goods: chips and salsa. She likes

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Maria has budgeted a total of $9 to spend on two goods: chips and salsa. She likes to consume a unit of chips in combination with a unit of salsa. Any unit of chips that she cannot consume in combination with a unit of salsa is useless. Similarly, any unit of salsa that she cannot consume in combination with a unit of chips is useless. If the price of a unit of chips is $0.50 and the price of a unit of salsa is $0.10, how many units of each good does she purchase?
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Managerial Economics Theory Applications and Cases

ISBN: 978-0393912777

8th edition

Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield

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