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Economics

You have the option of renting a car on a daily basis for $40/day or on a weekly basis for $200/wk. Draw your budget constraint for a budget of $360/trip.

a. Find your best affordable bundle if your travel preferences are such that you require exactly $140 worth of other goods for each day of rental car consumption.

b. Alternatively, suppose you view a day of rental car consumption as a perfect substitute for $35 worth of other goods.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M968815

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