What is the name of the axiom that states that, if bundle x is ever directly revealed to be preferred to bundle y when the two bundles are not identical, then y can never be directly revealed to be preferred to x?
A) Weak Axiom of Revealed Preference (WARP)
B) Strong Axiom of Revealed Preference (SARP)
C) Generalized Axiom of Revealed Preference (GARP)

Question

Quizplus · Accepted Answer

The Weak Axiom of Revealed Preference (WARP) states that if a consumer chooses bundle x over bundle y when both are available, then the consumer should not choose y over x in any other circumstance, assuming no changes in income or prices. This axiom prevents cyclical preferences and ensures consistency in choice behavior.

What Is the Name of the Axiom That States That