Bobby makes a New Year's resolution to lose weight.On January 3^rd,he decides to go to Ben amp; Jerry's for ice cream instead of going to the gym.Using the concept of revealed preference,economists would most likely conclude that Bobby: A) is not a rational individual. B) actually gains more utility from ice cream than working out. C) has changed his preferences. D) has no choice over the actions he takes.

Question

Quizplus · Accepted Answer

The concept of revealed preference suggests that an individual's true preferences are revealed by their actual choices. Therefore, if Bobby chose to go to Ben & Jerry's instead of the gym, it implies that he gained more utility (or satisfaction) from eating ice cream than working out, thereby indicating that option B is the most suitable.

Bobby Makes a New Year's Resolution to Lose Weight