Question

Briefly describe the Procedure of analyzing Financial Statement. (7 marks)

Answer 1

(c) FALSE
Tom prefers more of both the goods - it means that his preference is weakly monotonic, but no strictly monotonic.

(d) TRUE
A consumer should be worse off, while the price of one of the complements increases. She can't substitute ice cream by the apple pie, and she will pay more money for ice cream.

(e) FALSE
A bid bi < vi is not weakly dominated by bidding bi = vi, and any bid bi'.