dimpy.handa
Dimpy Handa
This statement is considered true a prior by the Austrian School:
All other things being equal, people prefer more of an economic good to less.
This statement is false.
If we consider that the non-equalizing factor in a preference for less of an economic good over more would be that more would result in in greater perceived disutility (the non-equalizing factor), then we must also consider that there is a non-equalizing factor in a preference for more of an economic good over less due to a perceived increase in utility. (Let me say here that by "utility" I mean the perceived ability of an economic good to satisfy needs or wants.)
If we insist that all other things be equal, we can neither increase nor decrease the perceived utility of a greater quantity of an economic good because to do so would mean that not all other things are equal.
So if all other things are equal, that is, if there is no perceived increase or decrease in utility of an economic good, then their will be no preference for more or less of that economic good.
Put in the form of a statement:
All things being equal, there is no preference for more of an economic good over less of an economic good.
All other things being equal, people prefer more of an economic good to less.
This statement is false.
If we consider that the non-equalizing factor in a preference for less of an economic good over more would be that more would result in in greater perceived disutility (the non-equalizing factor), then we must also consider that there is a non-equalizing factor in a preference for more of an economic good over less due to a perceived increase in utility. (Let me say here that by "utility" I mean the perceived ability of an economic good to satisfy needs or wants.)
If we insist that all other things be equal, we can neither increase nor decrease the perceived utility of a greater quantity of an economic good because to do so would mean that not all other things are equal.
So if all other things are equal, that is, if there is no perceived increase or decrease in utility of an economic good, then their will be no preference for more or less of that economic good.
Put in the form of a statement:
All things being equal, there is no preference for more of an economic good over less of an economic good.