Microeconomics theory and applications 12th edition browning solutions manual 1

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Browning & Zupan / Microeconomics: Theory & Applications, 12e

Solutions Manual

Solution Manual for Microeconomics Theory and Applications 12th Edition Browning Zupan 1118758870 9781118758878 Download full solution manual at: https://testbankpack.com/p/solution-manual-for-microeconomicstheory-and-applications-12th-edition-browning-zupan-11187588709781118758878/ Download full test bank at: https://testbankpack.com/p/test-bank-for-microeconomicstheory-and-applications-12th-edition-browning-zupan-11187588709781118758878/

Chapter 5 Using Consumer Choice Theory Solutions

5.1 In the figure below, AZ is the budget line without a government subsidy. The budget line with the subsidy is ABZ’. The portion AB is on the original budget line because the first visit is not subsidized by the health plan. On visits over one, the University of Arizona pays half, so the budget line becomes flatter. Tony’s new optimal point is E’ and he consumes two visits to the dentist. The total cost of dental visits is AJ, but Tony pays only AK and the University of Arizona pays KJ.

Copyright © 2015 John Wiley & Sons, Inc.

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