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)the bundle (6, 6)is revealed preferred to (10, 0)but there is no evidence that she violates WARP.
B)neither bundle is revealed preferred to the other.
C)Goldie violates WARP.
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

Goldie chooses (6, 6) when it is affordable at prices (6, 7), and (10, 0) when it is affordable at prices (2, 5). The bundle (6, 6) is revealed preferred to (10, 0) because she chose it when both were affordable, but there is no evidence of a WARP violation since we don't have a situation where she chooses differently when both bundles are affordable at the same time.

If the Only Information We Had About Goldie Were That