Which of the following best describes the basic idea of revealed preference?
If a consumer is asked which of two market baskets he or she prefers, the consumer will always be able to reveal his or her preference. If a consumer prefers market basket A to market basket B and also prefers market basket B to market basket C, then the consumer has revealed that he or she prefers market basket A to market basket C. If a consumer chooses one market basket over another, then the consumer must prefer the chosen market basket. If a consumer chooses one market basket over another, and if the chosen market basket is more expensive than the alternative, then the consumer must prefer the chosen market basket.