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    Question

    What does the Weak Axiom of Revealed Preference (WARP)

    state?
    A If a consumer chooses bundle A over bundle B in one situation, they will always choose bundle B in another situation. Correct Answer Incorrect Answer
    B If a consumer chooses bundle A over bundle B when both are affordable, they should not choose B over A in another situation where both are still affordable. Correct Answer Incorrect Answer
    C Consumers always maximize utility by choosing the cheapest bundle. Correct Answer Incorrect Answer
    D If a consumer chooses a bundle that maximizes utility in one period, they are free to choose any bundle in the next period. Correct Answer Incorrect Answer

    Solution

    The correct answer is B

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