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Suppose a Consumer Is at an Optimum, Consuming 6 Hamburgers

Question 135

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Suppose a consumer is at an optimum, consuming 6 hamburgers a week at a price of $1.50 each and 10 donuts a week at 50 cents a donut. If the price of a hamburger increases to $2.00, what will the consumer do to arrive at a new equilibrium? Why?

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At the equilibrium, the MU of the last d...

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