The Principle of Revealed Preference Would Say That If Xavier

question 17

Multiple Choice

The principle of revealed preference would say that if Xavier chooses market basket A over market basket B then:

• A) if A is more expensive than B, then Xavier must prefer A over B.
• B) if A is more expensive than B, then Xavier must prefer B over A.
• C) if A is less expensive than B, then Xavier must prefer A over B.
• D) if A is less expensive than B, then Xavier must prefer B over A.

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Definitions:

Preexisting Moral Obligation

A moral duty or responsibility that already exists before any new agreement or contract is made.

Consideration

The value (such as money, a service, or a promise) that is exchanged between parties in a contract.

Doctrine of Promissory Estoppel

A legal principle that prevents a promisor from retracting a promise that the promisee has relied upon, resulting in a significant change of position.

Disputed Debt

A disagreement between a creditor and a debtor over the existence, amount, or terms of repayment of a debt.