If Goldie Chooses the Bundle (6, 6)when Prices Are ($6

question 10

Multiple Choice

If Goldie chooses the bundle (6, 6) when prices are ($6, $2) and the bundle (10, 0) when prices are ($5, $5) , Aif (P2 > 4) ]

• A)the bundle (6, 6)is revealed preferred to (10, 0)but there is no evidence that she violates WARP.
• B)neither bundle is revealed preferred to the other.
• C)the bundle (10, 0)is revealed preferred to (6, 6)and she violates WARP.
• D)Goldie violates WARP.
• E)the bundle (10, 0)is revealed preferred to (6, 6)and there is no evidence that she violates WARP.

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded.

Complements

Goods that are often used together, where an increase in demand for one leads to an increase in demand for the other.

Shift In The Demand Curve

A change in the demand for a product or service, resulting from factors like changes in income, preferences, or prices of other goods.

Movement Along The Demand Curve

A change in the quantity demanded of a good due to a price change, holding all other factors constant.