Suppose That a Consumer's Increase in Nominal Income from the Base

question 121

Essay

Suppose that a consumer's increase in nominal income from the base year exceeds the inflation level given by a Laspeyres cost of living index for their level of purchases :
(
<
).
Show that this information implies that the consumer is strictly better-off as compared to the base year. (Hint: Use a revealed preference argument.)

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Definitions:

Agreeableness

A personality trait characterized by attributes like being kind, sympathetic, cooperative, warm, and considerate towards others.

Leadership Categorization Theory

People are more likely to view somebody as a leader and to evaluate them as a more effective leader when they possess prototypical characteristics of leadership.

Characteristics

Distinctive features or qualities that define a person, thing, or phenomenon.

Effective Leader

A person who can influence and guide followers or other members of an organization to achieve specific goals in an efficient manner.