State the implications of the weak axiom of revealed preference (WARP) for consumer choice. The following table indicates a consumer's observed choices for two goods, x1 and x2, under three sets of prices: period P1 P2 3 3 X2 1 1 2 2 3 1 2 3 3 4 1 1 Do these choices satisfy WARP? Explain why or why not.

State the implications of the weak axiom of revealed preference (WARP) for consumer choice. The following table indicates a consumer's observed choices for two goods, x1 and x2, under three sets of prices: period P1 P2 3 3 X2 1 1 2 2 3 1 2 3 3 4 1 1 Do these choices satisfy WARP? Explain why or why not.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter3: Preferences And Utility

Section: Chapter Questions

Problem 3.1P

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