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Assume you have $10 to spend on either apples or chocolate. The price of a pound of apples is $3/pound and the price of chocolate is $5/pound.
a) Graph the consumption possibilities curve
b) What is the opportunity cost of the 1st pound of chocolate?
c) What is the opportunity cost of the last pound of chocolate?
d) Assume you get an additional $5 and you find out that the price of apples has increased from $3/pound to $3.50 pounds. Draw the new consumption possibilities curve
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