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At Prices (P1, P2)= ($4, $2), Ivan Buys the Bundle

Question 51

Multiple Choice

At prices (p1, p2) = ($4, $2) , Ivan buys the bundle (x1, x2) = (8, 20) .At prices (p'1, p'2) = ($2, $4) , he buys the bundle (x'1, x'2) = (10, 13) .At prices (p''1, p''2) , he buys the bundle (x''1, x''2) = (14, 11) .If his preferences satisfy the strong axiom of revealed preferences, then it must be that


A) 8p1 > 2p2.
B) 6p''1 < 9p''2.
C) 6p''1 <8p''2.
D) p''1 = p''2.
E) None of the above.

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