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26-04-2024
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The price for good 1 is 2 dollars per unit. Good 2 is sold at a price of 1 dollar per unit.
(1) Sketch the budget set and shade it in with income 20 dollars.
(2) Sketch some of the consumer's indifference curves and label the point that he chooses.
(3) Calculate the amount of good 1 and the amount of good 2 that he demands at these prices and
this income.

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