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8.8 (1) This problem continues with the adventures of Mr. Consumer
from the previous problem.
(b) In May, cigarettes stayed at $2 per pack and as the sale on ice cream
ended, the price returned to $2 per pint. On the way to the store, however,
Mr. C found $30 lying in the street. He then had $130 to spend on
cigarettes and ice cream. Draw his May budget with a dashed line. Without
knowing what he purchased, one can determine whether he is better
off than he was in at least one previous month. Which month or months?
(c) In fact, Mr. C buys 40 packs of cigarettes and 25 pints of ice cream
in May. Does he satisfy WARP?
Please explain me the solutions.
Thanks!
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