Question:
Keeping a consumer’s income constant, if bundle X is chosen by a consumer when bundle Y is available, then when bundle Y is chosen, X must not be a feasible alternative. This property of consumer behaviour is known as:
Keeping a consumer’s income constant, if bundle X is chosen by a consumer when bundle Y is available, then when bundle Y is chosen, X must not be a feasible alternative. This property of consumer behaviour is known as:
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Recall revealed preference properties.
Updated On: Dec 21, 2024
- The generalized axiom of consumer preference
- The weak axiom of revealed preference
- The feasibility property
- The strong axiom of revealed preference
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The Correct Option is B
Solution and Explanation
The weak axiom of revealed preference states that if a consumer chooses bundle X when bundle Y is available, then X must not be preferred over Y in any other situation. This axiom reflects consistent preferences over time.
Therefore, the correct answer is (b).
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