When prices are ($2, $10) , Emil chooses the bundle (1, 6) , and when prices are ($12, $4) , he chooses the bundle (7, 2) .
A) Emil violates WARP.
B) Emil has kinked indifference curves.
C) The bundle (1, 6) is revealed preferred to (7, 2) , but (7, 2) is not revealed preferred to (1, 6) .
D) The bundle (7, 2) is revealed preferred to (1, 6) , but (1, 6) is not revealed preferred to (7, 2) .
E) None of the above.
Correct Answer:
Verified
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