Order the answer to: Felix chooses between clothing, q1, and food, q2. His initial

Academic Help business-economics Order the answer to: Felix chooses between clothing, q1, and food, q2. His initial

business-economics

Order the answer to: Felix chooses between clothing, q1, and food, q2. His initial

Question Felix chooses between clothing, q1, and food, q2. His initial income is $1,000 a month, p1 = 100, and p2 = 10. At his initial bundle, he consumes q1 = 2 and q2 = 80. Later, his income rises to $1,200 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 a revealed preference reasoning (that is, knowing nothing about his indifference curves), can you determine how he ranks the two bundles?
Subject business-economics
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