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Q: Microeconomics - WARP and SARP - Consumer Theory ( No Answer,   2 Comments )
Question  
Subject: Microeconomics - WARP and SARP - Consumer Theory
Category: Business and Money > Economics
Asked by: la2005-ga
List Price: $35.00
Posted: 14 Oct 2005 22:45 PDT
Expires: 17 Oct 2005 11:00 PDT
Question ID: 580521
Please answer the following question for me:

Given a price-wealth pair, the consumer's choices are described as follows:
i. If p1 less than or equal to p2, spend 20% of wealth of good 1 and 80% on good 2.

ii. If p1 > p2, spend 80% of wealth on good 1 and 20% on good 2.

I need the demand functions and I need to know which of the following
are satisfied assuming prices and wealth are strictly positive:

1.homogeneity of degree zero
2.budget balancedness
3.Weak Axiom of Revealed Preference (WARP)
4.Strong Axiom of Revealed Preference (SARP)

Thanks. I would like an answer as soon as possible but I understand if
a day or two is required.

Also, I do TIP if I believe you have done an excellent job and deserve
more compensation.
Answer  
There is no answer at this time.

Comments  
Subject: Re: Microeconomics - WARP and SARP - Consumer Theory
From: politicalguru-ga on 15 Oct 2005 01:17 PDT
 
Google Answers discourages and may remove questions that are homework
or exam assignments
Subject: Re: Microeconomics - WARP and SARP - Consumer Theory
From: la2005-ga on 15 Oct 2005 08:16 PDT
 
I assure you this is not a homework or exam assignment.

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