If a competitive consumer chooses consumption program x=(20,5,7) at competitive prices p=(2,1,5), consumption program y=(15,10,6) at competitive prices p’=(3,1/2,5) then under the usual assumptions, A) violates the weak axiom of revealed preference (WARP) B) doesn’t violate WARP and exhibit direct revealed preference for x with respect to y. C) doesn’t violate WARP and exhibit direct revealed preference for y with respect to x. D) doesn’t violate WARP and doesn’t exhibit any direct revealed preference between x and y. E) NOPAC

If a competitive consumer chooses consumption program x=(20,5,7) at competitive prices p=(2,1,5), consumption program y=(15,10,6) at competitive prices p’=(3,1/2,5) then under the usual assumptions, A) violates the weak axiom of revealed preference (WARP) B) doesn’t violate WARP and exhibit direct revealed preference for x with respect to y. C) doesn’t violate WARP and exhibit direct revealed preference for y with respect to x. D) doesn’t violate WARP and doesn’t exhibit any direct revealed preference between x and y. E) NOPAC

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 5SQ

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