Pierre's friend Henri lives in a town where he has to pay 3 francs per glass of wine and 2 francs per loaf of bread.Henri consumes 10 glasses of wine and 4 loaves of bread per day.Recall that Bob has an income of $15 per day and pays $.50 per loaf of bread and $2 per glass of wine.If Bob has the same tastes as Henri and if the only thing that either of them cares about is the consumption of bread and wine,
A)Henri is better off than Bob.
B)both of them violate the weak axiom of revealed preferences.
C)there is not enough information to determine whether one is better off than the other.
D)Bob is better off than Henri.
E)Bob and Henri are equally well off.

Question

Quizplus · Accepted Answer

The Answer of Pierre's friend Henri lives in a town where he has to pay 3 francs per glass of wine and 2 francs per loaf of bread.Henri consumes 10 glasses of wine and 4 loaves of bread per day.Recall that Bob has an income of $15 per day and pays $.50 per loaf of bread and $2 per glass of wine.If Bob has the same tastes as Henri and if the only thing that either of them cares about is the consumption of bread and wine,
A)Henri is better off than Bob.
B)both of them violate the weak axiom of revealed preferences.
C)there is not enough information to determine whether one is better off than the other.
D)Bob is better off than Henri.
E)Bob and Henri are equally well off.

Pierre's Friend Henri Lives in a Town Where He Has