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Desmond Has Lived in Australia, Belgium, and Canada

Question 3

Multiple Choice

Desmond has lived in Australia, Belgium, and Canada.His tastes never changed but his income and prices did.In Australia his commodity bundle was (x1, x2) = (7, 8) , in Belgium it was (9, 4) , and in Canada it was (7, 5) .Prices in Canada were (p1, p2) = (3, 3) , and prices in Australia were (p1, p2) = (3, 3) , and prices in Australia were (p1, p2) = (16, 4) .


A) Desmond's consumption in Australia is directly revealed preferred to his consumption in Belgium.
B) His consumption in Australia is indirectly revealed preferred to his consumption in Belgium.
C) His consumption in Australia is indirectly but not directly revealed preferred to his consumption in Canada.
D) We can't tell if he was better off in Belgium or in Australia.
E) None of the above.

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