Q115
The Revealed Preference Theory deduces the inverse price-quantity relationship from
A.
Assumption of indifference
B.
Postulate of utility maximization
C.
Observed behavior of the consumer
AnswerD.
Introspection
Answer: Option C
Solution
Answer: Option C
Solution:
The Revealed Preference Theory deduces the inverse price-quantity relationship from observed behavior of the consumer. Revealed preference theory asserts that the best way to measure consumer preferences is to observe their purchasing behavior.