Re: Points of discontinuity (holes and vertical asymtotes)

Posted by Econenthusiast on Dec 17, 2017; 6:07am
URL: http://discussion-forum.276.s1.nabble.com/Points-of-discontinuity-holes-and-vertical-asymtotes-tp7608497p7608532.html

You're right soimmoi, made some hasty calculation mistakes earlier.

Bundle A, B and C at A's prices: A - 200 B - 200  C-240
At B's prices A- 510  B-265  C-220

At C's prices  A- 440 B- 260 C-240

For A and B, A is chosen even when B was affordable in case 1. By WARP, A becomes unaffordable when B is preferred. A is preferred over B.

Similarly, B is preferred over C. By transitivity A is preferred over C.