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, 21 and 12, under three sets of prices: period P1 P2 1 3. 3 2 3. 1 2 3 3. 4. 3 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, 21 and 12, under three sets of prices: period P1 P2 1 3. 3 2 3. 1 2 3 3. 4. 3 1 1 Do these choices satisfy WARP? Explain why or why not.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter5: Income And Substitution Effects

Section: Chapter Questions

Problem 5.6P

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