A firm sells two products. Its price for product 1 is $4. If a consumer purchases at least 5 units of the first product, the second product is sold at a discounted price, otherwise it is sold at a...


A firm sells two products. Its price for product 1 is $4. If a consumer<br>purchases at least 5 units of the first product, the second product is sold at<br>a discounted price, otherwise it is sold at a regular price. What can you say<br>about the regular and discounted prices of the second product if a consumer<br>with income 48 could afford bundles (3;6), (5;7), and (6;6), but a consumer<br>with income 42 could not afford any of them? You should explain your<br>reasoning and clearly identify what your final answer is for each of the<br>prices.<br>

Extracted text: A firm sells two products. Its price for product 1 is $4. If a consumer purchases at least 5 units of the first product, the second product is sold at a discounted price, otherwise it is sold at a regular price. What can you say about the regular and discounted prices of the second product if a consumer with income 48 could afford bundles (3;6), (5;7), and (6;6), but a consumer with income 42 could not afford any of them? You should explain your reasoning and clearly identify what your final answer is for each of the prices.

Jun 11, 2022
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