It follows from the weak axiom of revealed preference that if a consumer chooses x when he could afford y and chooses y when he could afford x, then his income must have changed between the two observations.

Question

Quizplus · Accepted Answer

The weak axiom of revealed preference simply states that if a consumer prefers bundle x to bundle y when both are affordable, they will not prefer y to x if both are still affordable later, without implying anything about changes in income.

It Follows from the Weak Axiom of Revealed Preference That