Revealed Preference 1. In a 3-good world, let A stand for the bundle (7, 9, 2), B stand for the bundle (8, 5, 5), and C stand for the bundle (6, 6, 8). When prices are ($2, $4, $1), Betty chooses C. On a different date, prices are ($5, $3, $3) and she chooses A. On yet another different day, when prices are ($3, $1, $4), she chooses B. For each pair of bundles (A and B, A and C, B and C) examine if one is directly revealed preferred to the other, or if one is indirectly revealed preferred to the other, or neither is directly/indirectly revealed preferred to the other. 2. 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 ofx and 5 marks per unit of y. Anju spends her entire income on 5 units ofx 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 ofx and 11 units of y. Would Reva prefer to have Anju's income and prices instead of her own? Explain