At prices ($4, $12), Harry chooses the bundle (9, 4).At the prices ($8, $4), Harry chooses the bundle (2, 9).Is this behavior consistent with the weak axiom of revealed preference?
A)Yes.
B)No.
C)It depends on his income.
D)We would have to observe a third choice to be able to say.
E)None of the above.

Question

Quizplus · Accepted Answer

The weak axiom of revealed preference states that if a consumer chooses one bundle over another when both are affordable, then the consumer should not choose the second bundle when the first remains affordable. In this case, Harry's choices are consistent with the axiom because the change in prices and chosen bundles reflect a shift in affordability and preference without contradicting the axiom's principle.

At Prices ($4, $12), Harry Chooses the Bundle (9, 4)