In comparing one market basket, A, to others to the northwest or southeast, we can say that a typical consumer will   THE NORTHWEST AND SOUTHEAST ARE REFERRING TO THE POINTS ON A BUDGET CONSTRAINT AND INDIFFERENCE CURVE   prefer A to any other market basket.   prefer any other market basket to A.   be indifferent between A and any other market basket in the Northwest or Southeast.   be indifferent between some other market baskets in the Northwest or Southeast

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Revealed Preferences and Budget Constraint Analysis

Revealed means “Let Out,” and Preference means “Choice”; Choice Reveals Preference.