Unformatted text preview: p 1 y 1 + p 2 y 2 , we say that ( x 1 ,x 2 ) is directly revealed pre-ferred to ( y 1 ,y 2 ) (e) if X is directly revealed preferred to Y , and Y is directly revealed preferred to Z (etc.), then we say that X is indirectly revealed preferred to Z (see ﬁgure 7.2. in the textbook) (f) the “chains” of revealed preference can give us a lot of information about the preferences (see ﬁgure 7.3. in the textbook) (g) the information revealed about tastes by choices can be used in formulating economic policy 1...
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This note was uploaded on 12/09/2010 for the course ECON 206 taught by Professor Ioanadan during the Summer '10 term at University of Toronto.
- Summer '10