Essay
Show that the following preferences are not consistent for a rational individual.
i.An individual when confronted with prices of p₁ = $4 and p₂ = $8 chooses q₁ = 1 and q₂ = 5.
ii.The same individual facing prices of p₁ = $6 and p₂ = $9 chooses q₁ = 5 and q₂ = 3.
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The first income level was 4 + 40 = 44.T...View Answer
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