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Suppose Justin's preference over goods x and y remain unchanged over two periods, and he has $100 budget in each period. In the first period,
Suppose Justin's preference over goods x and y remain unchanged over two periods, and he has $100 budget in each period. In the first period, the prices were given by px= 20 and py= 10, and he chose bundleA= (4,2); in the second period the prices were given by px = 10 and py= 20, and he chose bundle B = (2, 4). Is Justin's behavior consistent with the model we developed of rational consumer behavior? Explain.
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