Does it matter for economics if peoples preferences violate
Does it matter (for economics) if people’s preferences violate the axioms of revealed preference?
Solution
No it does not. The reason is in economics behaviour of consumer is not explained by only revealed preference theory. E G if consumer chooses eggs over bread in one situation it will mean he prefers eggs to bread according to revealed preference theory. But if he prefers bread to eggs in other situation when eggs were affordable the revealed preference theory breaks but indifference curve can explain that the consume is indifferent between eggs and bread
