Revealed preference is:
A) the idea that people's preferences can be determined by observing their choices and behavior.
B) the notion that people reveal the utility they get by reporting it on a numerical scale.
C) the method that psychologists, anthropologists, and economists use to measure utility.
D) All of these are true.

Question

Quizplus · Accepted Answer

Revealed preference refers to the concept that individuals reveal their preferences based on their choices and behavior. Specifically, it suggests that people's preferences can be inferred from the choices they make in the market (e.g. what they buy, how much they pay for it, etc.). It is important to note that this concept does not rely on any assumptions about utility, as it is solely based on observing people's behavior.

Revealed Preference Is