Following the Clues: Revealed Preference in Action

Use a consumer's observed choices to uncover hidden preferences — no surveys needed

Revealed Preference Graph

Consumer Choice Data — Scenario 1 of 3
Scenario Budget Pizza Price Coffee Price Chosen Bundle Interpretation
🔍 Revealed Preference Principle If a consumer chose Bundle A when Bundle B was also affordable, then A is revealed preferred to B. This means B cannot lie on a higher indifference curve than A.