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Pierre's Friend Henri Lives in a Town Where He Has

Question 15

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Pierre's friend Henri lives in a town where he has to pay 3 francs per glass of wine and 7 francs per loaf of bread.Henri consumes 10 glasses of wine and 4 loaves of bread per day.Recall that Bob has an income of $15 per day and pays $.50 per loaf of bread and $2 per glass of wine.If Bob has the same tastes as Henri and if the only thing that either of them cares about is the consumption of bread and wine,


A) both of them violate the weak axiom of revealed preferences.
B) Bob is better off than Henri.
C) Henri is better off than Bob.
D) there is not enough information to determine whether one is better off than the other.
E) Bob and Henri are equally well off.

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