Jim sees commuting by bus and t as perfect substitutes u t, Ask an Expert

Economics

Jim sees commuting by bus and T as perfect substitutes (U = T + B), that is, he would exchange one commute by bus for one commute by T. The price of a bus ticket is $1.50 and the price of a T ticket is $2.00. Jim has $6.00 to spend on commuting.

(a) Graph the budget constraint.

(b) Find the best affordable bundle and add it to the graph with the relevant indifference curve.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91424311

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