Consider two goods: $\mathrm{a}$ and $\mathrm{b}$. Each consumption bundle contains some $a \geq 0$ and some $b \geq 0$. Suppose there are two reference points: $r_{1}$ and $r_{2}$, which contain $(3,5)$ and $(5,5)$ of $(a, b)$, respectively. Consider two consumption bundles $x_{1}$ and $x_{2}$ which contain $(6,2)$ and $(3,8)$, respectively. Further, suppose $x_{1} \sim_{r_{1}} x_{2}$ and the reference structure displays loss aversion, what MUST be true?

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The Answer of Consider two goods: $\mathrm{a}$ and $\mathrm{b}$. Each consumption bundle contains some $a \geq 0$ and some $b \geq 0$. Suppose there are two reference points: $r_{1}$ and $r_{2}$, which contain $(3,5)$ and $(5,5)$ of $(a, b)$, respectively. Consider two consumption bundles $x_{1}$ and $x_{2}$ which contain $(6,2)$ and $(3,8)$, respectively. Further, suppose $x_{1} \sim_{r_{1}} x_{2}$ and the reference structure displays loss aversion, what MUST be true?

Consider Two Goods a\mathrm{a}a And b\mathrm{b}b Each Consumption Bundle Contains Some a≥0a \geq 0a≥0

Consider Two Goods $\mathrm{a}$ And $\mathrm{b}$ Each Consumption Bundle Contains Some $a \geq 0$