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Melissa Has the Utility Function U = SC for Bundles

Question 92

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Melissa has the utility function U = SC for bundles of yogurt smoothies (S) and iced coffee (C), with MUS = C and MUC = S. (Assume smoothies will be on the vertical axis.) She has $120, with the price of smoothies $8 and the price of iced coffee $4. Melissa will buy _____smoothies and _____iced coffees in equilibrium.

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