Suppose that Nicole is currently consuming the optimal mix of apples and bananas; also assume that this optimal mix satisfies her tangency condition (i.e., both quantities are positive and her indifference curves are smooth). To be concrete, also suppose that the price of bananas and apples are each 100 pesetas and that she consumes 150 apples and 100 bananas over the course of the year

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The information provided tells us about Nicoles consumption behavior but doesnt directly tell us any... View the full answer