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:

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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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