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Suppose that you have recorded the consumption data of a consumer over several periods as follows: In period 1, (p1,p2) = (2,2) and he choses

Suppose that you have recorded the consumption data of a consumer over several periods as follows:

In period 1,

(p1,p2) = (2,2) and he choses (x1,x2) = (1,3)

What is the income he must be earning?

In period 2 and 3, you recorded the consumption data of the same consumer again:

Period 2 (p1,p2) = (4,1) and he chooses: (x1,x2) = (2,4)

Period 3 (p1,p2) = (1.5, 3.5) and he chooses (x1,x2) = (3,3)

Show that whether the consumer satisfies the Weak Axiom of Revealed Preferences (WARP) and Strong Axiom of Revealed Preferences (SARP) or not.

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