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15-02-2024
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Consider problem 4. Given a price change we worked with in class (Notes #7, slides 9-11), suppose initially m=$20, p_(1)=$2, p_(2)=$5. Our consumer has perfect substitute preferences. What should the consumer do in this situation?
A) Increase their budget
B) Decrease the price of p_(1)
C) Decrease the price of p_(2)
D) Find an alternative product

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