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Two Goods in an Individual's Consumption Bundle Are Perfect Substitutes

Question 85

Multiple Choice

Two goods in an individual's consumption bundle are perfect substitutes.For a given amount of income, the individual's optimal consumption bundle will be:


A) a bundle that is made up of exactly 50% of each of the two goods.
B) a bundle that is made up entirely of the good that has the lower price.
C) a bundle that is made up entirely of the good that has the higher price.
D) the bundle that contains all of the horizontal axis good.

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