Felix chooses between clothing q1 and food q2 his initial, Ask an Expert

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Felix chooses between clothing, q1, and food, q2. his initial income is $1000 a month, p1=100 and p2=10. at his initial bundle he consumes q1=2 and q2=80. Later, his income rises to $1200 and the price of clothing rises to p1=150, but the price of food does not change. As a result, he reduces his consumption of clothing to one unit. Using arevealed preference reasoning can you determine how he ranks the 2 bundles?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91707714

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