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Revealed Preferences Tells Us That If Basket AA And Basket BB Lie on the Same Budget Constraint but the Consumer Chooses

Question 77

Multiple Choice

Revealed preferences tells us that if basket AA and basket BB lie on the same budget constraint but the consumer chooses BB instead of AA , then we know that:


A) AA is strictly preferred to BB .
B) AA is preferred to BB .
C) BB is strictly preferred to AA .
D) BB is preferred to AA .

Correct Answer:

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