Theory truly reveal consumer preference

Assignment Help Macroeconomics
Reference no: EM131255484

Does Revealed Preference theory truly reveal consumer preference when the consumer is able to afford all of the available options? For example, if a consumer is confronted with three goods and they can afford to purchase all three (A, B, and C) and they choose to first purchase A, then C, and then B - does this suggest that the consumer preference for the goods is A > C > B? The debate rests on the fact that since the consumer can afford all three goods and does not need to make a preferential decision, does the order of consumption reflect any preference?

Reference no: EM131255484

Questions Cloud

Logical constructions of mathematical economics : How is it possible to provide causal explanations using the purely logical constructions of mathematical economics?
How many baskets should ecotable purchase : If they purchase only 3 baskets, what is the probability that some demand will not be satisfied?  - How many baskets should EcoTable purchase to maximize its expected profit?
Explain the formation of stereotypes : Explain the formation of stereotypes. Next, identify the one (1) approach that you believe would be the most effective way for society to reduce stereotypes. Provide a rationale for your response.
What should be the legal and ethical reaction of business : State your opinion as to the impact of conducting business with these countries and the ramifications of doing so. What should be the legal and ethical reaction of the business community for these types of violations
Theory truly reveal consumer preference : Does Revealed Preference theory truly reveal consumer preference when the consumer is able to afford all of the available options? For example, if a consumer is confronted with three goods and they can afford to purchase all three
Determine what roi you would have received on bonds : Note its YTM and use it to determine what ROI you would have received on bonds with them. You are welcome to use any other route to get the bond ROI.
Discuss what aspects of this assignment you found : In the reflection statement, discuss what aspects of this assignment you found helpful for your future career and mention some strategies you can use to improve your speechmaking abilities in the future
Receive interest payments from borrowers : In 2015, some banks in Europe had to make interest payments to borrowers rather than receive interest payments from borrowers. Which of the following statements describes this situation?
What inductive reasoning is and summarize hume argument : Hume argues that inductive reasoning is not justified. Explain what inductive reasoning is and summarize Hume's argument. Ten, either (i) imagine a possible objection one could raise to the argument and defend Hume from this objection with an argu..

Reviews

Write a Review

Macroeconomics Questions & Answers

  What backs our money supply

Everyone loves to learn about money. There are many interesting questions and issues. What backs our money supply. What role is played by gold. Are credit cards considered money. Should we get rid of the penny.

  Derive the firms total cost function

Suppose a firms production function is given by Q= L^1/2 * K^1/2. The marginal product of labor and the marginal product of capital are given by:

  Clipit utilize this advantage to be the first to choose

Clipit utilize this advantage to be the first to choose its profit-maximizing output level in the market.

  Compute producer surplus surplus and profit in this case

Compute producer surplus, how much is the difference between the producer surplus and profit in this case

  Suppose we have a data set with only two observations y1

suppose we have a data set with only two observations y1 and y2. the general formula for the sample average is sample

  Determine the optimal allocation of time

What is it and how do we represent this information in a graph (You do not need to draw a graph to answer this question correctly)?

  Calculate consumption-leisure and labor supply

We assume there are no lump-sum taxes and no dividend income: ? = T = 0. We assume h = 1 and the wage rate w = 1. There is a consumption tax such that for each purchased unit of consumption, the consumer needs to pay 1 +t units where t goes to the..

  Sources of expenditures in economy

List and explain the sources of expenditures in economy by focusing on the 4 major sectors of economy.

  Roles of external economies and knowledge

Discuss the roles of external economies and knowledge spillovers in shaping comparative advantage and international trade patterns. Introduction, literature survey, theoretical framework, suggested implications and conclusion.

  Aggregate demand and supply model

Determine the expended change to gross product and the price level likely to be in the short run explain how can this be illustrated by an aggregate demand and supply model?

  Explain the difficulty of defining and using the user cost

Explain the difficulty of defining and using the user cost of capital and discuss the value in making decisions based on it, rather than using accounting expense data. What is the difference between opportunity cost and accounting costs?

  Taxis in many cities around the world the taxi-cab industry

taxis in many cities around the world the taxi-cab industry is heavily regulated. analyze the three different regimes

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd