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1. This question concerns the theory of revealed preference. (20 points total) (a) For X and Y in some choice set C, define X is

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1. This question concerns the theory of revealed preference. (20 points total) (a) For X and Y in some choice set C, define \"X is revealed preferred to Y\" (or X RP Y). (5 points) (b) State the Weak Axiom of Revealed Preference (WARP). (5 points) (c) State the Strong Axiom of Revealed Preference (SARP). (5 points) (d) Assume WARP. If the choice set is C = {a,b}, a single observation of a decision maker's choice from C or a subset of C could tell us that aRPb, bRPa, or neither, but not both. Does this change if we have an arbitrary number of observations? Explain briefly. (5 points)

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