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Sidana [21]
4 years ago
7

Jacob buys only milk and cookies.

Business
1 answer:
Alchen [17]4 years ago
5 0

Answer:

A) With $100 Jacob can buy:

  • if he buys only milk, he will be able to buy 50 quarts
  • if he buys only cookies, he will be able to buy 25 dozens

B) if Jacob's salary increases by 10% but the prices of both milk and cookies increase also by 10%, his optimal combination will not change:

Jacob's new salary  is $110, milk's new price is $2.20 and cookies new cost is $4.40

  • if he buys only milk, he will be able to buy 50 quarts
  • if he buys only cookies, he will be able to buy 25 dozens

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