Question

Hubert is choosing a movie to watch. His movie options are The Rock (R), The Paperboy (P), and Edward Scissorhands (S). Hubert has $5 to spend. a. Suppose the prices of R and P are both $5, but the price of S is $10. In this case, Hubert would choose P. Based on this choice, ___ is directly revealed preferred to ___. b. Now suppose the prices of P and S are both $5, but the price of R is $10. In this case, Hubert would choose S. Based on this choice, ___ is directly revealed preferred to ___. c. Finally, suppose the prices of S and R are both $5, but the price of P is $10. In this case, Hubert would choose R. Based on this choice, ___ is directly revealed preferred to ___.

Answer 1

Humbert chose different options in each of the situations. Although his preference was always the movie The Rock (R) because he chose it twice.

The situations raised allow us to know what Humbert's preference is according to the amount of money she has to spend.

From this, it can be inferred that her favorite movie of the three options she had is The Rock (R) because she chose it twice.

These situations are a sign that people generally choose their preferences based on other factors, in this case, it was money because in some cases they did not have enough money to pay for the movie that was worth $ 10 and had to adjust to those that were worth $ 5.

• A. P is directly revealed preferred to R.
• B. S is directly revealed preferred to P.
• C. R is directly revealed preferred to S.

Learn more in: brainly.com/question/1229264