When Prices Are ($2, $4), Ms

question 53

Multiple Choice

When prices are ($2, $4) , Ms.Consumer chooses the bundle (7, 9) , and when prices are ($15, $3) , she chooses the bundle (10, 3) .Is her behavior consistent with the weak axiom of revealed preference?

• A)Yes.
• B)No.
• C)We would have to observe a third choice to be able to say.
• D)We can't tell because we are not told her income in the two cases.
• E)None of the above.

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Definitions:

Gallons

A unit of measurement for volume, commonly used to measure liquids.

Direct Labor Price Variance

A measure used in managerial accounting to calculate the difference between the actual cost of direct labor and the expected (or standard) cost, affecting the overall cost of production.

Standard Rate

The predetermined cost or price utilized in budgeting and costing exercises, aimed at simplifying accounting practices or performance evaluations.

Direct Labor Hours

The total hours worked by employees directly involved in the production of goods or services.