Question: You have the option of renting a car on a daily basis for $40/day or on a weekly basis for $200/wk. draw your budget constraint
a. Find your best affordable bundle if your travel preferences are such that you require exactly $140 worth of other goods for each day of rental car consumption.
b. Alternatively, suppose you view a day of rental car consumption as a perfect substitute for $35 worth of other goods.
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Your budget constraint is Y 360 40C for 0 C 5 days of car rental when you pay the daily rate constan... View full answer
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