Franco and Gianni have the same tastes and consume only two goods, wine and pizza.Franco lives in Milano and spends 100,000 lire per week.It costs him 5,000 lire for a bottle of wine and 5,000 lire for a pizza.Gianni lives in Napoli.It costs him 4,000 lire for a bottle of wine and 6,000 lire for a pizza.At those prices, he chooses to buy 10 bottles of wine and 6 pizzas per week.
A) Franco is better off with his own budget than he would be with Gianni's.
B) Gianni is better off with his own budget than he would be with Franco's.
C) Franco and Gianni violate WARP.
D) Franco and Gianni are equally well off.
E) There is not enough information to determine whether either would prefer the other's bundle.
Correct Answer:
Verified
Q45: Howard Send is deciding whether to keep
Q46: Consider the case of Ronald.Let the prices
Q47: On the planet Hyperion, every consumer who
Q48: On the planet Homogenia, every consumer who
Q49: On the planet Hyperion, every consumer who
Q51: Pierre's friend Henri lives in a town
Q52: At prices (p1, p2)= ($4, $2), Ivan
Q53: Pierre's friend Henri lives in a town
Q54: Tonal is a traveling substitute orchestra conductor.Each
Q55: Consider the case of Ronald.Let the prices
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents