Australian bottle shops often sell beer in a pack of 6 or individually. Suppose an individual...

Australian bottle shops often sell beer in a pack of 6 or individually. Suppose an individual beer costs $6, but a six pack costs $30. Your friend has $210.

a) Graphically illustrate how this pricing affects the your friend's budget set if the other good is $1.

b) Assuming your friend has standard indifference curves, how many beers would you expect them to purchase?

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Rahul Sunny answered 1 year ago

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