According to revealed preference, a consumer that chooses to smoke cigarettes:
A)derives more utility from smoking than from other goods that could have been purchased with the money spent on cigarettes.
B)derives more happiness from smoking than from other goods that could have purchased with the money spent on cigarettes.
C)is minimizing utility given the options available.
D)is behaving irrationally.

Question

Quizplus · Accepted Answer

Revealed preference theory suggests that if a consumer chooses to purchase a particular good, they derive more utility from it than from other goods they could have purchased with the same resources.

According to Revealed Preference, a Consumer That Chooses to Smoke