Question

You consume the bundle (10, 15) when p1 = 1 and p2 = 1, while you consume the bundle (5, 10) when p1 = 3 and p2 = 1. Is your behavior consistent with the Weak Axiom of Revealed Preference? Why yes or why not?

Answer 1

The student's behavior is consistent with the Weak Axiom of Revealed Preference.

Step-by-step explanation:

The student's behavior is consistent with the Weak Axiom of Revealed Preference. The Weak Axiom of Revealed Preference states that if a consumer chooses one bundle over another when both bundles are available at the same price, then the chosen bundle is revealed to be preferred to the other bundle. In this case, the student chose the bundle (10, 15) over the bundle (5, 10) when both bundles were available at the same prices. Therefore, the student's behavior is consistent with the Weak Axiom of Revealed Preference.