Jake's Car: State and Perception

Jake's Perception of His Car

Jake has been driving his 2004 Bluerace car for ten years now; he thinks that it's getting on in years. This describes Jake's _____ in the context of his car.

What does "Jake's state in the context of his car" refer to?

Answer:

Actual state.

Explanation:

Since Jake has not yet changed his car, his state in the context of his car is his actual state. A consumer’s actual state is his perceived current state.

← The concept of compensating variation in economics How much cash was paid for dividends during the period →

More Posts: