if the only information we had about Goldie were that she chooses the bundle (6, 6)when prices are (6, 7)and she chooses the bundle (10, 0)when prices are (2, 5), then we could conclude that
A)Goldie violates WARP.
B)the bundle (6, 6)is revealed preferred to (10, 0)but there is no evidence that she violates WARP.
C)neither bundle is revealed preferred to the other.
D)the bundle (10, 0)is revealed preferred to (6, 6)and she violates WARP.
E)the bundle (10, 0)is revealed preferred to (6, 6)but there is no evidence that she violates WARP.

Question

Quizplus · Accepted Answer

The bundle (6, 6) is revealed preferred to (10, 0) because Goldie chooses (6, 6) when prices are (6, 7) and (10, 0) when prices are (2, 5). This means that she is willing to pay more for (6, 6) than for (10, 0). However, there is no evidence that she violates WARP because we do not know her preferences for other bundles.

If the Only Information We Had About Goldie Were That