JNU 2001 part 2 discussion

[econ14]

for q6. answer is increase by 5 units....

[Anjali]

Tsuki m talking about ques 4 ( for MRS )
But I guess it should be indifferent

[Homer Simpson]

Anjali, consumer is indeed neither better nor worse off in period II. However, we cant use MRS logic here. I reckon it makes more sense to compute price index and compare with the expenditure index. Refer to Varian's Revealed Preference Topic

[Anjali]

Yes tsuki you are right. But here neither of weights are same. What will you take as weight ? My logic is not MRS , I was taking it as a case of indifference because utility is same