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Joe Can Afford Two Bundles of Goods x1x_{1} And x2x_{2} Joe Chooses

Question 32

Multiple Choice

Joe can afford two bundles of goods: x1x_{1} and x2x_{2} . Joe chooses x1x_{1} . Thus x1x_{1} is strictly revealed preferred to x2x_{2} only if


A) p2x2<p1x1p_{2} x_{2}<p_{1} x_{1}
B) p2x2=p1x1p_{2} x_{2}=p_{1} x_{1}
C) p2x2>p1x1p_{2} x_{2}>p_{1} x_{1}
D) Both are affordable.

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