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Application of Revealed Preference Approach
It has been strongly argued, especially by Sir John Hicks, that one major advantage of revealed preference theory is that it is explicitly designed to allow econometricians to make use of it. Above all, econometric studies suggest that the conclusions of the theory are realistic. For executives, the consumer behaviour model forms a basis for advanced courses of marketing.
Over the last year both the supply and demand for oil in the US has gone up. What might have caused this and what happened to the price and quantity of oil?
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