Bart is seen standing in front of the cooler that contains containers of iced tea and lemonade.Moments later,we see Bart drinking iced tea,and we conclude Bart is getting more utility from that drink than lemonade.We drew that conclusion based on what economic concept?
A) Revealed preference
B) Utility minimization
C) Satisfaction scales
D) Rational behavior

Question

Quizplus · Accepted Answer

The concept of revealed preference suggests that an individual's preferences can be inferred from their observable behavior, such as the choice of one product over another. In this case, we see Bart choosing iced tea over lemonade, which leads us to conclude that he is getting more utility from the iced tea.

Bart Is Seen Standing in Front of the Cooler That