Consider the graph to the right. It is almost identical to the one we've been examining except that here the good on the horizontal axis is Ramen, a popular food among college students with limited budgets and a favorite food to give up upon graduation.

    As before, we graph the consumers original budget constraint for Ramen where the vertical intercept is the consumers income IO and the slope is -PR1. When faced with this budget constraint our consumer chooses to purchase RO packets of Ramen noodles.

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