Definitions and Theory
Let there be 2 bundles of goods (x1,x2) and (y1,y2) available at price (p1,p2),assuming that the consumer has an income 'm'. It is observed that the consumer buys (x1,x2) bundle of goods. To translate this arithmetically following equation is formulated p1y1+p2y2
Read more about this topic: Revealed Preference
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