Multiple Choice
Pierre's friend Henri lives in a town where he has to pay 3 francs per glass of wine and 5 francs per loaf of bread.Henri consumes 5 glasses of wine and 4 loaves of bread per day.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 consumption of bread and wine,
A) Bob and Henri are equally well off.
B) Henri is better off than Bob.
C) Bob is better off than Henri.
D) both of them violate the weak axiom of revealed preferences.
E) we do not have enough information to be able to determine whether one is better off than the other.
Correct Answer:

Verified
Correct Answer:
Verified
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