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Mary has faced the following budgets and made the following choices. Budget 1: Income = 10, price of x is 2 and price of
Mary has faced the following budgets and made the following choices. Budget 1: Income = 10, price of x is 2 and price of y is 1. Choice is x=3 and y = 4. Budget 2: Income = 8, price of x and y are both 1. Choice is x = 1 and y=7. (a) Do her choices satisfy the Weak Axiom of Revealed Preference (WARP)? Explain. (b) Do her choices satisfy the Strong Axiom of Revealed Preference (SARP)? Explain.
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a To check if Marys choices satisfy the Weak Axiom of Revealed Preference WARP we need to s...
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Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587
