Question
(60 marks total) Determine whether each of the following statements is True, False or Uncertain, and explain your answers. Answers without explanations will not be
(60 marks total) Determine whether each of the following statements is True, False or Uncertain, and explain your answers. Answers without explanations will not be marked. Your answers are not supposed to be long. You should aim at half a page per question if you are hand-writing, or one-quarter of a page per question if you are typing. Marks will be deducted for extraneous answers.
4. (6 marks) Persephone consumes only two goods: Grain and pomegranate. In summer, when the price of grain is $1 (per unit) and the price of pomegranate is $4 (per unit), she consumes 14 units of grain and 16 units of pomegranate. In winter, when the price of grain is $4 and the price of pomegranate is $2, she consumes 22 units of grain and 12 units of pomegranate. Her choices violate the weak axiom of revealed preference.
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