Lisa views pizzas and burritos as goods. If she prefers a bundle of 4 burritos and 4 pizzas to a bundle of 4 burritos and 5 pizzas, which property of consumer preference is violated? What change in the assumptions could lead a rational consumer to prefer the first bundle?
What will be an ideal response?
ANSWER
The property of more-is-better is violated. However, if pizza is a bad, then a rational consumer would prefer the first bundle.
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