When the market prices are Rs 5 per apple and Rs 6 per orange a person buys 16 apples and 28 oranges. When the prices are Rs 4.4 per apple and Rs 6.4 per orange ,the person buys 20 apples and 25 oranges.Assuming that utility is derived only from apples and oranges,in which situation is the person better off?
My answer: it can't be said because in the first case the second bundle is not affordable and in the second case the first one is not affordable. Therefore, none is revealed preferred to the other?
Is this correct? Please help. I'm trying to understand this concept. Thanks so much in advance.