Consider a person who is endowed with 10 units of P and 10 units of G. If you observe the person not buying or selling Good Pand G, the person's BL is the ( Select ) If you observe the person selling G and using the proceeds to buy P the person's BL is ( Select ) If you observe the person selling P and using the proceeds to buy G the person's BL is ( Select )

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Options for all of them: blue one, red one, neither blue or red

4th option: homthetic preference, quasilinear preference, revealed preference

Consider a person who is endowed with 10 units of P and 10 units of G.
If you observe the person not buying or selling Good Pand G, the person's BL is the
( Select )
If you observe the person selling G and using the proceeds to buy P the person's BL is
( Select )
If you observe the person selling P and using the proceeds to buy G the person's BL is
( Select )
This is an example of ( Select )
Good P
Y-10
2-10
T.
Good G
Transcribed Image Text:Consider a person who is endowed with 10 units of P and 10 units of G. If you observe the person not buying or selling Good Pand G, the person's BL is the ( Select ) If you observe the person selling G and using the proceeds to buy P the person's BL is ( Select ) If you observe the person selling P and using the proceeds to buy G the person's BL is ( Select ) This is an example of ( Select ) Good P Y-10 2-10 T. Good G
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So is this an example of: hometheic preferences, quasilinear preferences, or revealed preferences?

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