Skip to content
We use only essential cookies to keep you signed in and remember your preferences. See our Cookie Policy.
TestStop
MocksPracticeResourcesIndiaBlogPricing
Sign in
Questions › JNU › JNU SIS 2021 › Q55
0 marksMicroeconomics › Consumer preferences and utility › Revealed preferenceModerateabout 2 min

JNU SIS 2021 Question 55: Consumer preferences and utility

Suppose p and y denote the vector of prices and income, respectively. Suppose consumption bundle x0x^0x0 is chosen in a budget scenario (p0,y0)(p^0, y^0)(p0,y0) and x1x^1x1 is chosen in a different budget scenario (p1,y1)(p^1, y^1)(p1,y1) so that p0x0=y0p^0x^0=y^0p0x0=y0, p1x1=y1p^1x^1=y^1p1x1=y1, p0≠p1p^0\ne p^1p0=p1, and x0≠x1x^0\ne x^1x0=x1. Which of the following is/are not consistent with the weak axiom of revealed preference (WARP)?
A. p1x0≤y1p^1x^0\le y^1p1x0≤y1 and p0x1>y0p^0x^1> y^0p0x1>y0
B. p0x1≤y0p^0x^1\le y^0p0x1≤y0 and p1x0≤y1p^1x^0\le y^1p1x0≤y1
C. p0x1≤y0p^0x^1\le y^0p0x1≤y0 and p1x0>y1p^1x^0> y^1p1x0>y1

Choose the correct answer from the options given below:

Tap an option to check your answer.

Answer and worked solution

Checking your account…

Plain-text version

Suppose p and y denote the vector of prices and income, respectively. Suppose consumption bundle x⁰ is chosen in a budget scenario (p⁰, y⁰) and x¹ is chosen in a different budget scenario (p¹, y¹) so that p⁰x⁰=y⁰, p¹x¹=y¹, p⁰≠ p¹, and x⁰≠ x¹. Which of the following is/are not consistent with the weak axiom of revealed preference (WARP)? A. p¹x⁰≤ y¹ and p⁰x¹> y⁰ B. p⁰x¹≤ y⁰ and p¹x⁰≤ y¹ C. p⁰x¹≤ y⁰ and p¹x⁰> y¹ Choose the correct answer from the options given below: (A) A only (B) B only (C) C only (D) A and C only

Also written as: Suppose p and y denote the vector of prices and income, respectively. Suppose consumption bundle x^0 is chosen in a budget scenario (p^0, y^0) and x^1 is chosen in a different budget scenario (p^1, y^1) so that p^0x^0=y^0, p^1x^1=y^1, p^0!= p^1, and x^0!= x^1. Which of the following is/are not consistent with the weak axiom of revealed preference (WARP)? A. p^1x^0<= y^1 and p^0x^1> y^0 B. p^0x^1<= y^0 and p^1x^0<= y^1 C. p^0x^1<= y^0 and p^1x^0> y^1 Choose the correct answer from the options given below:

Consumer preferences and utility has come up 93 times in 7 exams since 2007.

What this question tests

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.

TestStop has 12 past-paper questions on this subtopic.

Practise Consumer preferences and utilityMore on Revealed preference

Similar questions from other papers

  • CUET-PG 2026 · Q1Which among the following is not an assumption of Indifference Curve?
  • GATE 2026 · Q28Madhu's utility function is given by U=max (2C,3F), where C represents the amount of cloth and F represents the amount of food. Her preferences DO NOT satisfy which one…
  • UGC-NET 2026 · Q55Which of the following is NOT the assumption of the Revealed Preference Hypothesis?
  • CUET-PG 2025 · Q1If the demand function is given as P = 110 - Q² and market equilibrium is attained at P₀ = 29 and Q₀ = 9, calculate the consumer surplus.
  • GATE 2025 · Q38A Constant Elasticity of Substitution (CES) utility function is given as: U_(CES)(z₁,z₂) = 1/δ(z₁^δ + z₂^δ) where z₁ and z₂ are two goods, and δ ≤ 1, δ ≠ 0. A…

Question from the JNU SIS 2021 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.