Final answer:
Bundle 1 is directly revealed preferred to bundle 2 and bundle 3 in Economics, when a consumer chooses bundle 1 over these bundles assuming prices and income allow for the purchase of any of the bundles.
Step-by-step explanation:
The question involves the concept of revealed preference, which is a method used in Economics to determine preferences based on consumer choices. Each bundle mentioned contains two goods. In the context of revealed preference theory, we would say that bundle 1 is directly revealed preferred to another bundle if the consumer chooses bundle 1 when both are available at the same prices. Given bundles 1 (10,5), 2 (8,3), and 3 (5,8), we can determine that bundle 1 is directly revealed preferred to both bundle 2 and bundle 3 if the consumer chose bundle 1 over the others when they had the opportunity to choose any of the three. In summary, bundle 1 offers more of at least one good and no less of the other good compared to bundle 2 and 3, therefore, it is directly revealed preferred.