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Q: Microeconomics - Consumer Theory - Weak Axiom of Revealed Preference ( No Answer,   0 Comments )
Question  
Subject: Microeconomics - Consumer Theory - Weak Axiom of Revealed Preference
Category: Business and Money > Economics
Asked by: la2005-ga
List Price: $25.00
Posted: 14 Oct 2005 23:08 PDT
Expires: 15 Oct 2005 16:01 PDT
Question ID: 580525
I have the following question:

Given the following price and consumption bundles:

p1 = (1,3,1)       x1 = (4,2,3)
p2 = (2,a,6)       x2 = (5,3,1)
p3 = (5,3,4)       x3 = (2,2,b)

Would Weak Axiom of Revealed Preference be satisfied with a = 4 and b = 8? 

If a = 5, b>0, what necessary and sufficient condition is required to satisfy 
Weak Axiom of Revealed Preference?

If a>0,b>0, what relation between a and b is necessary and
sufficient for the Weak Axiom of Revealed Preference to hold? Please
show this by making a graph on the a-b plane.

Thanks. I will TIP you if I feel that you need to be compensated even
more for an outstanding answer. I need a reply as soon as possible.
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