Advanced Microeconomics/Revealed Preferences

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Weak Axiom of Revealed Preferences[edit]

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, Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "/mathoid/local/v1/":): {\displaystyle p^{\prime}\cdot x(p,w) > w^{\prime}}