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Questions 1 & 2 Individual A Perfect 1:1 substitutes x-axis: one particular good – p 1 = 0.8 y-axis: all other goods – money, given that p 2 = 1 M = 120.
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Managerial Economics & Business Strategy Chapter 4 The Theory.
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David Bryce © 1996-2002 Adapted from Baye © 2002 Power of Substitutes: Economics of Cross-Price Elasticities MANEC 387 Economics of Strategy MANEC 387.
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