Crystal enjoys drinking coffee and soda. Both cost $1 each, and she allocates $150 to spend on these beverages alone eac

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answerhappygod
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Crystal enjoys drinking coffee and soda. Both cost $1 each, and she allocates $150 to spend on these beverages alone eac

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Crystal enjoys drinking coffee and soda. Both cost $1 each, and she allocates $150 to spend on these beverages alone each month. On the following graph, BC1BC1 is Crystal's budget constraint for consumption of coffee and soda before any taxes are imposed (BC1BC1). The indifference curve, U1U1, lies tangent to BC1BC1 at point A.
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