There are 3 items of choice, , and Ms. A has 4 choice situations: in 3 of them she is asked to choose one or more items from the pairs , and , and she chooses , and respectively. In the 4th situation she must choose from ; we are not told her choice. Which is correct?
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There are 3 items of choice, x,y,z, and Ms. A has 4 choice situations: in 3 of them she is asked to choose one or more items from the pairs {x,y}, {y,z} and {x,z}, and she chooses x, y and z respectively. In the 4th situation she must choose from {x,y,z}; we are not told her choice. Which is correct? (A) Ms A's choices violate the weak axiom of revealed preference. (B) Ms A's choices are consistent with the weak axiom of revealed preference. (C) We can't say (a) or (b) because we don't know her choice from the set {x,y,z}. (D) We can't say (a) or (b), even though we can deduce her choice from the set {x,y,z}.
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This question is on Revealed preference, part of Consumer preferences and utility in Microeconomics.
Inferring preferences from observed choices: the weak and strong axioms of revealed preference and consistency checks.
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Question from the DSE 2008 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.