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Microeconomics
Choice and Demand Continued Further
O.P.C. - Perfect Substitutes
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Carra
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Cards (4)
p1 > p2 =
entire income spent on good 2
p1 < p2 =
entire income spent on good 1
p1 = p2 =
anywhere apart from corners are optimal
How it relates to the price of the other good =
how the changes in the price of good 1 matters in terms of comparison with good 2