Let A stand for the bundle (7, 9), B stand for the bundle (10, 5), and C stand for the bundle (6, 6).When prices are (2, 4), Betty chooses C.When prices are (12, 3)she chooses A
A)A is directly revealed preferred to B
B)A is indirectly revealed preferred to B.
C)C is directly revealed preferred to A.
D)B is directly revealed preferred to A.
E)None of the above.

Question

Quizplus · Accepted Answer

Given the choices Betty makes at different prices, there's no direct or indirect comparison between A and B based on the provided information. Direct and indirect revealed preferences require a comparison where one bundle is chosen over another given the same price or budget constraint, which is not provided between A and B here.

Let a Stand for the Bundle (7, 9), B Stand