Solved

When the Prices Were ($4, $1), Maria Chose the Bundle

Question 54

Multiple Choice

When the prices were ($4, $1) , Maria chose the bundle (x, y) = (8, 6) .Now at the new prices, (px, py) , she chooses the bundle (x, y) = (7, 9) .For Maria's behavior to be consistent with the weak axiom of revealed preference, it must be that


A) py = 4px.
B) 4py < px.
C) 3py < px.
D) px < 3py.
E) None of the above.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions