Advanced Microeconomics/Revealed Preferences

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Weak Axiom of Revealed Preferences[edit | edit source]

The demand function satisfies the weak axiom of revealed preference if:

In words:
The consumer faced with could have chosen $\funcd{x}{p^{\prime},w^{\prime}}$ but chose , assuming the consumer chooses consistently, if $\funcd{x}{p^{\prime},\primd{w}}$ is ever chosen, must not be affordable. Hence,