Consider the following consumption choices A, B, C, and D of good X and good Y....

 

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Consider the following consumption choices A, B, C, and D of good X and good Y. Y BL A B D BL2 a) A consumer chooses A when his budget line is BL, but B when his budget line is BL2. Using preference relation notations from the course, write five binary relationships between A, B, C, and D according to the consumer's revealed preference. (5 pts.) b) A consumer chooses C when his budget line is BL, but D when his budget line is BL2. Using preference relation notations from the course, write five binary relationships between A, B, C, and D according to the consumer's revealed preference. (5 pts.) c) Explain why you do not expect a consumer to choose C when the consumer's budget line is BL, while he chooses B when the budget line is BL2. (5 pts.) Consider the following consumption choices A, B, C, and D of good X and good Y. Y BL A B D BL2 a) A consumer chooses A when his budget line is BL, but B when his budget line is BL2. Using preference relation notations from the course, write five binary relationships between A, B, C, and D according to the consumer's revealed preference. (5 pts.) b) A consumer chooses C when his budget line is BL, but D when his budget line is BL2. Using preference relation notations from the course, write five binary relationships between A, B, C, and D according to the consumer's revealed preference. (5 pts.) c) Explain why you do not expect a consumer to choose C when the consumer's budget line is BL, while he chooses B when the budget line is BL2. (5 pts.)