The concentration of the active ingredient, sodium hypochlorite, in Clorox is twice that of the generic brand.

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The concentration of the active ingredient, sodium hypochlorite, in Clorox is twice that of the generic brand. Consequently, Chris views one cup of Clorox to be a perfect substitute for two cups of the generic. If Clorox costs \(\$ 3\) gallon, the generic costs \(\$ 1\), and Chris allocates \(Y=\$ 6\) per year for bleach, what bundle does Chris buy? If the price of Clorox falls to \(\$ 2\), how does Chris' behavior change?

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Microeconomics

ISBN: 9781292215624

8th Global Edition

Authors: Jeffrey Perloff

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