<p>Yes, your reasoning and your conclusion are correct.</p>

CC BY-SA 3.0
2017-04-06T14:13:38.347Z
2017-04-06T14:13:38.347Z
Oliv
<blockquote>
  <p>When the market prices are Rs 5 per apple and Rs 6 per orange a person
  buys 16 apples and 28 oranges. When the prices are Rs 4.4 per apple
  and Rs 6.4 per orange ,the person buys 20 apples and 25
  oranges.Assuming that utility is derived only from apples and
  oranges,in which situation is the person better off?</p>
</blockquote>

<p>My answer: it can't be said because in the first case the second bundle is not affordable and in the second case the first one is not affordable. Therefore, none is revealed preferred to the other?</p>

<p>Is this correct? Please help. I'm trying to understand this concept. Thanks so much in advance.</p>

<utility><preferences><self-study>
Revealed preferance: elementary question
Idkwoman
# Revealed preferance: elementary question

(Asked by: username_0 on 2017-04-06)

> When the market prices are Rs 5 per apple and Rs 6 per orange a person
> buys 16 apples and 28 oranges. When the prices are Rs 4.4 per apple
> and Rs 6.4 per orange ,the person buys 20 apples and 25
> oranges.Assuming that utility is derived only from apples and
> oranges,in which situation is the person better off?

My answer: it can't be said because in the first case the second bundle is not affordable and in the second case the first one is not affordable. Therefore, none is revealed preferred to the other?

Is this correct? Please help. I'm trying to understand this concept. Thanks so much in advance.

**Tags:** utility, preferences, self-study

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## 1 answers

### Answer by username_1 on 2017-04-06. Score: -1 | Accepted answer

Yes, your reasoning and your conclusion are correct.


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