The consumer buys bundle x'at prices p'i = 0,1. Separately for parts (a) to (do, state whether these indicated choices satisfy WARP: (a) Po = (1,3), x° = (4,2); p' = (3,5), x' = (3,1). (b) Po = (1,6), x° = (10,5); p' = (3,5), x' = (8,4). (c) P0 = (1,2), x° = (3,1); p' = (2,2), x' = (1,2). (d) Po = (2,6), xº = (20,10); p' = (3,5), x' = (18,4). %3D %3! %3D

The consumer buys bundle x'at prices p'i = 0,1. Separately for parts (a) to (do, state whether these indicated choices satisfy WARP: (a) Po = (1,3), x° = (4,2); p' = (3,5), x' = (3,1). (b) Po = (1,6), x° = (10,5); p' = (3,5), x' = (8,4). (c) P0 = (1,2), x° = (3,1); p' = (2,2), x' = (1,2). (d) Po = (2,6), xº = (20,10); p' = (3,5), x' = (18,4). %3D %3! %3D

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 2.5P

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