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 › UoH › UoH 2018 › Q26
1 mark, −0.33Microeconomics › Consumer preferences and utility › Revealed preferenceHardabout 2 min

UoH 2018 Question 26: Consumer preferences and utility

When prices are (p1,p2)=(1,2)(p_1, p_2) = (1,2)(p1​,p2​)=(1,2) a consumer demands (x1,x2)=(1,2)(x_1,x_2) = (1,2)(x1​,x2​)=(1,2), and when prices are (p1,p2)=(2,1)(p_1, p_2) = (2,1)(p1​,p2​)=(2,1) the consumer demands (x1,x2)=(2,1)(x_1,x_2) = (2,1)(x1​,x2​)=(2,1). Is this behavior consistent with the model of maximizing behavior?

Tap an option to check your answer.

Answer and worked solution

Checking your account…

Plain-text version

When prices are (p₁, p₂) = (1,2) a consumer demands (x₁,x₂) = (1,2), and when prices are (p₁, p₂) = (2,1) the consumer demands (x₁,x₂) = (2,1). Is this behavior consistent with the model of maximizing behavior? (A) the consumer violates the Weak Axiom of Revealed Preference (WARP) (B) no violations of WARP (C) cannot say (D) not enough data

Also written as: When prices are (p_1, p_2) = (1,2) a consumer demands (x_1,x_2) = (1,2), and when prices are (p_1, p_2) = (2,1) the consumer demands (x_1,x_2) = (2,1). Is this behavior consistent with the model of maximizing behavior?

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 UoH 2018 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.