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At prices (p1, p2) = (6, 2), Kevin buys the bundle

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0604. At prices (p1, p2) = (6, 2), Kevin buys the bundle (x1, x2) = (11, 15).;At prices (p1', p2') = (2, 6), Kevin buys the bundle (x1', x2') = (9, 13).;At prices (p1'', p2'') = (3, 4), he buys the bundle (x1'', x2'') = (15, 11).;Identify which bundles are directly and indirectly preferred to others, and check to see if the Weak Axiom of Revealed Preference (WARP) holds.

 

Paper#28517 | Written in 18-Jul-2015

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