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 (1, 5), then we could conclude that
A)Goldie violates WARP.
B)neither bundle is revealed preferred to the other.
C)the bundle (6, 6)is revealed preferred to (10, 0)but there is no evidence that she 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 bundle (6, 6) over (10, 0) when prices change from (6, 7) to (1, 5). This means that bundle (6, 6) is revealed preferred to (10, 0). However, we cannot conclude that Goldie violates WARP based on this information alone. There may be other prices at which Goldie chooses (10, 0) over (6, 6), and we would need more information to determine if she violates WARP or not.

If the Only Information We Had About Goldie Were That