The Strong Axiom of Revealed Preference Requires That If a Consumer

question 41

True/False

The strong axiom of revealed preference requires that if a consumer chooses x when he can afford y and chooses y when he can afford z, then he will not choose z when he can afford x.

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Definitions:

Safe Condition

Safe condition denotes an environment or situation that poses no risk of injury or harm to people.

Mishandling

Inappropriate or careless management, leading to damage or loss.

Harmful

Causing or potentially causing damage, injury, or negative effects to someone or something.

Make Goods

Products or services offered to compensate for a deficiency or to fulfill a previously unmet obligation.