situation price demand
p1 p2 x y
1. 1 1 5 35
2. 1 2 35 10
check for warp .....
can this be the answer : the commodity bundles lie on the same indifference curve and are equilibrium points for different budget sets.

Question

situation       price           demand
                   p1    p2          x         y      
     1.           1        1           5         35
      2.           1        2          35         10
check for warp .....
can this be the answer : the commodity bundles lie on the same indifference curve and are equilibrium  points for different budget sets.

anonymous · Answer

Is that the full question? Because it seems to be lacking something. Perhaps a diagram? Utility functions? It's somewhat difficult to check for WARP when you're given two situations with different price indices and only 1 bundle for each situation - you need to be able to compare two different bundles on the same budget constraint to find whether WARP holds.

anonymous · Answer

help .....