Re: JNU 2001 part 2 discussion

Posted by Homer Simpson on May 08, 2014; 5:09pm
URL: http://discussion-forum.276.s1.nabble.com/JNU-2001-part-2-discussion-tp7588868p7589046.html

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