7.2 In Problem 7.3, Pierre's friend Henri lives in a town where he has to pay 3 francs per glass of wine and 6 francs per loaf of bread. Henri consumes 6 glasses of wine and 4 loaves of bread per day. Recall that Bob has an income of $15 per day and pays $.50 per loaf of bread and $2 per glass of wine. If Bob has the same tastes as Henri and if the only thing that either of them cares about is consumption of bread and wine, we can deduce (a) nothing about whether one is better than the other. (b) Henri is better off than Bob.81 ai woh of viðsion TT

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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7.2 In Problem 7.3, Pierre's friend Henri lives in a town where he has
to pay 3 francs per glass of wine and 6 francs per loaf of bread. Henri
consumes 6 glasses of wine and 4 loaves of bread per day. Recall that Bob
has an income of $15 per day and pays $.50 per loaf of bread and $2 per
glass of wine. If Bob has the same tastes as Henri and if the only thing
that either of them cares about is consumption of bread and wine, we can
deduce
(a) nothing about whether one is better than the other.
(b) Henri is better off than Bob.
(c) Bob is better off than Henri.
(d) both of them violate the weak axiom of revealed preferences. (6)
(e) Bob and Henri are equally well off.
Transcribed Image Text:7.2 In Problem 7.3, Pierre's friend Henri lives in a town where he has to pay 3 francs per glass of wine and 6 francs per loaf of bread. Henri consumes 6 glasses of wine and 4 loaves of bread per day. Recall that Bob has an income of $15 per day and pays $.50 per loaf of bread and $2 per glass of wine. If Bob has the same tastes as Henri and if the only thing that either of them cares about is consumption of bread and wine, we can deduce (a) nothing about whether one is better than the other. (b) Henri is better off than Bob. (c) Bob is better off than Henri. (d) both of them violate the weak axiom of revealed preferences. (6) (e) Bob and Henri are equally well off.
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