A Consumer's Behavior Was Observed in Three Situations with Different

question 31

Multiple Choice

A consumer's behavior was observed in three situations with different prices and incomes.In situation 1, she chose a bundle that cost $1,600.In situation 2, she chose a bundle that cost $2,500.In situation 3, she chose a bundle that cost $3,100.The bundle purchased in situation 2 would cost $1,200 at situation 1 prices.The bundle purchased in situation 3 cost $2,000 at situation 2 prices.This consumer's behavior is known to satisfy the strong axiom of revealed preference.Therefore, the bundle purchased in situation

• A)1 must cost less than $3,100 at situation 3 prices.
• B)3 must cost at least $3,100 at situation 1 prices.
• C)1 can not cost less than $3,100 at situation 3 prices.
• D)2 must cost at least $3,100 at situation 1 prices.
• E)None of the above.

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Definitions:

Product Information

Details and specifications about a product, including its uses, ingredients, and instructions for use.

PDR

Stands for the Physicians' Desk Reference, a comprehensive drug and prescription reference manual.

Antiplatelets

Medications that prevent blood cells called platelets from clumping together to form a blood clot, reducing the risk of heart attacks and strokes.

Bronchodilator

Medication that makes breathing easier by relaxing the muscles in the lungs and widening the airways (bronchi).