Problems involving perfect substitutes are the easiest to
solve—all you have to do is figure out which good is least expensive given the
utility provided. When the goods are identical (Exxon and Chevron), this is easy—
the consumer will choose to spend all of his or her budget on the good with the
lowest price.6 If Exxon costs $3 per gallon, and Chevron is $3.25, he or she will buy
only Exxon. If the gasoline budget is $30, 10 gallons will be bought.
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