Answered
if the only information we had about Goldie were that she chooses the bundle (6, 6) when prices are (6, 2) and she chooses the bundle (10, 0) when prices are (3, 5) , then we could conclude that
A) neither bundle is revealed preferred to the other.
B) Goldie violates WARP.
C) the bundle (6, 6) is revealed preferred to (10, 0) but there is no evidence that she violates WARP.
D) the bundle (10, 0) is revealed preferred to (6, 6) and she violates WARP.
E) the bundle (10, 0) is revealed preferred to (6, 6) but there is no evidence that she violates WARP.
On Jun 16, 2024