Question

A consumer purchases x1 = 40, x2 = 20 at the prices p1 = 4 and p2 = 12. He is also observed to purchase x1 = 36 and x2 = 8 at the prices p1 = 6 and p2 = 10. Which of the following is correct?

A It violates WARP
B It violates SARP
C It is consistent with WARP
D It is consistent with SARP
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