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Robert was helping his son work on the son's car when he temporarily lost the ability to speak in a normal manner and had difficulty handing his son the requested tools. This episode lasted for several minutes and then he was himself again. Robert's son insisted that his dad see his doctor after this episode. What might be the doctor's diagnosis of Robert's episode and what could be the cause?
WARP
WARP, or the Weak Axiom of Revealed Preference, is a consistency criterion for consumer choice behavior, suggesting that if a consumer prefers bundle A over bundle B when both are affordable, they should not choose B when A is still affordable.
Bundle
A collection of items or services grouped together as a single package.
Laspeyres Price Index
A price index calculated by taking the ratio of the total cost of purchasing a specified set of goods and services at current prices to the total cost of purchasing the same set of goods and services at base period prices, using base period quantities as weights.
Per Capita Income
The average income earned per person in a given area or country, calculated by dividing the total income by the population size.
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