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Economics - Financial Markets 21 Online
OpenStudy (anonymous):

Question 1. (6 marks) A consumer considers different bundles composed of music, snacksandpaperbacknovels. Letx1,x2,andx3,bevariablesrepresentingthequantityof each commodity as a non-negative integer value. Due to rationing, the consumer can obtain at most one unit of each good. T he associated prices are p1 = $2/unit , p2 = $1/unit , and p3 = $3/unit and the consumer’s disposable income is $4/week. i) Define the budget set of the consumer by listing the affordable combinations of the goods.

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