Suppose that marthas income is 40000 per year she can spend


Suppose that Martha's income is $40,000 per year. She can spend it on health care visits, which cost $80 per visit, or on groceries (standing for all other goods), which costs $100 per bag of groceries. Draw Martha's budget constraint. Using Indifference curves, show Martha's optimum if she buys 300 bags of groceries per year.

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Microeconomics: Suppose that marthas income is 40000 per year she can spend
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