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Question :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.

What is Jims best affordable choice? By how much can T ticket prices increase without making Jim worse o?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9892580

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