5.3 Felix chooses between clothing, q1, and food, q2. His initial income is $1,000 a month, p1...

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5.3 Felix chooses between clothing, q1, and food, q2.

His initial income is $1,000 a month, p1 = 100, and p2 = 10. At his initial bundle, he consumes q1 = 2 and q2 = 80. Later, his income rises to

$1,200 and the price of clothing rises to p1 = 150, but the price of food does not change. As a result, he reduces his consumption of clothing to one unit. Using a revealed preference reasoning

(that is, knowing nothing about his indifference curves), can you determine how he ranks the two bundles?

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Microeconomics Theory And Applications With Calculus

ISBN: 9781292162744

4th Global Edition

Authors: Jeffrey M. Perloff

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Question Posted: Nov 14, 2024 10:00 AM

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5.3 Felix chooses between clothing, q1, and food, q2. His initial income is $1,000 a month, p1...

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Microeconomics Theory And Applications With Calculus

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