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QUESTION 3 3. You have the following observations about a consumer's purchasing choices of two commodities. When the prices were ($7, $5) the choice was
QUESTION 3 3. You have the following observations about a consumer's purchasing choices of two commodities. When the prices were ($7, $5) the choice was a = (5, 6). When the prices were ($4, $6) the choice was b = (8, 3). When the prices were ($5, $6) the choice was c = (6, 5). a. (12pts) Determine how the consumer ranks the bundles using Directly Revealed Preferred (DRP) relation. b. (8pts) What can you say about the bundles using Indirectly Revealed Preferred (IRP) relation? Is the data consistent with Weak Axiom of Revealed Preference (WARP)? Is the data consistent with Strong Axiom of Revealed Preference (SARP)? If not, identify all violations. Attach File Browse Local Files Browse Content Collection Click Save and Submit to save and submit. Click Save All Answers to save all answers
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