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Reva and Anju live in different countries and possibly have different preferences. Each consumes two goods, x, and y. Anju has to pay 12 marks
Reva and Anju live in different countries and possibly have different preferences. Each consumes two goods, x, and y. Anju has to pay 12 marks per unit of x and 5 marks per unit of y. Anju spends her entire income on 5 units of x and 22 units of y. Good x costs Reva 9 quid per unit and good y costs Reva 7 quid per unit. Reva spends her entire income to buy 8 units of x and 11 units of y. Would Reva prefer to have Anju's income and prices instead of her own? Explain.
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