Over a three-year period, an individual exhibits the following consumption behavior: Px Py x y Year 1 3 3 7 4 Year 2 4 2 6 6 Year 3 5 1 7 3 Is this behavior consistent with the axioms of revealed preference?

Over a three-year period, an individual exhibits the following consumption behavior: Px Py x y Year 1 3 3 7 4 Year 2 4 2 6 6 Year 3 5 1 7 3 Is this behavior consistent with the axioms of revealed preference?

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Over a three-year period, an individual exhibits the following consumption behavior:

	Px	Py	x	y
Year 1	3	3	7	4
Year 2	4	2	6	6
Year 3	5	1	7	3

Is this behavior consistent with the axioms of revealed preference?

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