Solved

When the Prices Were ($5, $1), Vanessa Chose the Bundle

Question 58

Multiple Choice

When the prices were ($5, $1) , Vanessa chose the bundle (x, y) = (6, 3) .Now at the new prices, (px, py) , she chooses the bundle (x, y) = (5, 7) .For Vanessa's behavior to be consistent with the weak axiom of revealed preference, it must be that


A) 4py < px.
B) px < 4py.
C) 5py < px.
D) py = 5px.
E) None of the above.

Correct Answer:

verifed

Verified

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

Related Questions