The Strong Axiom of Revealed Preference Says That If a Consumer

question 14

True/False

The strong axiom of revealed preference says that if a consumer bought x when he could have afforded y and bought y when he could have afforded z, then he will buy x whenever he can afford z.

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Definitions:

Implied Warranty

An unwritten and unspoken guarantee that a product or service will meet a minimum level of quality and will perform as expected, even though it is not explicitly stated in a contract.

Merchantability

A warranty that goods sold will meet a minimum level of quality and will be fit for the purpose for which they are sold.

Implied Warranty

A legal assurance that goods or services meet a minimum level of quality, irrespective of whether it has been explicitly stated.

Merchantability

A warranty implied by law that goods sold by a merchant are fit for the general purpose for which they are sold.