Economics · Consumer Behaviour
Suppose a consumer chooses bundle A over B when both are affordable. Later, if B is chosen over A under new prices but A remains affordable, this violates the consistency principle in consumer behavior. This situation directly violates which of the following?
- 1GARP (Generalized Axiom of Revealed Preference)
- 2WARP (Weak Axiom of Revealed Preference)✓
- 3Law of demand
- 4Engel's law
Correct answer
WARP (Weak Axiom of Revealed Preference)
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