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... consists of the quantity q1 of good 1 and q2 of good 2 is written (q1,q2) For example, (4,3) means that we have units (or kilos, liters, etc) of good 1 and 3 units of good 2 The price of the basket... We can then buy a maximum of m’/p2 of good 2 and a maximum of m’/p1 of good 1 B1 consequently shifts to B4 Note that the slope of B4 is exactly the same as the slope of B1, since the prices are... bookboon.com Microeconomics Introduction 1 Introduction Economics is often defined as something along the lines of “the study of how society manages its scarce resources.” The starting point of most
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