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Economics

Lisa likes to have 1 bagel (X) with 2 packets of cream cheese (Y) for breakfast. Her breakfast budget is $10, and the price of a bagel is $3.50 and each packet of cream cheese is $0.75. a. (8 pts) What is Lisa’s optimal choice for breakfast? Illustrate her optimal choice on a graph, using indifference curve-budget line analysis. b. (4 pts) Suppose that the price of a bagel increases to $5. What is Lisa’s optimal choice for breakfast now? You do not need to illustrate this new choice in a graph.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9439881

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