Economics · Microeconomics
If bundle A is directly revealed preferred to bundle B, and bundle B is directly revealed preferred to bundle C, then according to the Weak Axiom of Revealed Preference (WARP):
- 1No logical inference can be drawn
- 2A cannot be revealed preferred to C
- 3C cannot be revealed preferred to A✓
- 4A must be revealed preferred to C
Correct answer
C cannot be revealed preferred to A
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