1. Pranav is deciding what to drink from a cooler that contains cans of soda pop and iced tea. When Pranav chooses iced tea, we assume that he will receive more utility from drinking iced tea than soda pop. Which economic concept is this conclusion based on? A. Satisfaction scales B. Revealed preference C. Rational behavior I Itility

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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1. Pranav is deciding what to drink from a cooler
that contains cans of soda pop and iced tea. When
Pranav chooses iced tea, we assume that he will
receive more utility from drinking iced tea than
soda pop. Which economic concept is this
conclusion based on?
A. Satisfaction scales
B. Revealed preference
C. Rational behavior
D. Utility minimization
Transcribed Image Text:1. Pranav is deciding what to drink from a cooler that contains cans of soda pop and iced tea. When Pranav chooses iced tea, we assume that he will receive more utility from drinking iced tea than soda pop. Which economic concept is this conclusion based on? A. Satisfaction scales B. Revealed preference C. Rational behavior D. Utility minimization
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