Question
In a 3-good world, let A stand for the bundle (7, 9, 2), B stand for the bundle (8, 5, 5), and C stand for
In a 3-good world, let A stand for the bundle (7, 9, 2), B stand for the bundle (8, 5, 5), and C stand for the bundle (6, 6, 8). When prices are ($2, $4, $1), Betty chooses C. On a different date, prices are ($5, $3, $3) and she chooses A. On yet another different day, when prices are ($3, $1, $4), she chooses B. For each pair of bundles (A and B, A and C, B and C) examine if one is directly revealed preferred to the other, or if one is indirectly revealed preferred to the other, or neither is directly/indirectly revealed preferred to the other.
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