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    Question

    Revealed preference theory assumes

    A Weak ordering Correct Answer Incorrect Answer
    B Strong ordering Correct Answer Incorrect Answer
    C Constant ordering Correct Answer Incorrect Answer
    D Multiple ordering Correct Answer Incorrect Answer

    Solution

    Revealed preference, a theory offered by American economist Paul Anthony Samuelson in 1938, states that consumer behaviour, if their income and the item's price are held constant, is the best indicator of their preferences. Revealed preference theory works on the assumption that consumers are rational have strong ordering.

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