Question: When prices are (4, 6), Goldie chooses the bundle (6, 6), and when prices are (6, 3), she chooses the bundle (10, 0). (a) On
When prices are (4, 6), Goldie chooses the bundle (6, 6), and when prices are (6, 3), she chooses the bundle (10, 0).
(a) On the graph below, show Goldie’s first budget line in red ink and her second budget line in blue ink. Mark her choice from the first budget with the label A, and her choice from the second budget with the label B.
(b) Is Goldie’s behavior consistent with the weak axiom of revealed preference?
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