The revealed preference approach refers to
A) Asking consumer to reveal their preferences using survey methods
B) Estimating demand curves by using data on individual consumers
C) A statistical method used to estimate demand curves
D) A method of gathering information about consumer's preferences by observing their actual choices

Question

Quizplus · Accepted Answer

The revealed preference approach involves observing actual consumer behavior and choices to infer their preferences instead of asking them directly. This approach assumes that consumers reveal their preferences through their actions in the marketplace, such as which products they buy or how much they are willing to pay for them. This method is often used to estimate demand curves and understand consumer behavior.

The Revealed Preference Approach Refers to