You Are Out to Dinner with Your Good Friend Desiree

question 35

Multiple Choice

You are out to dinner with your good friend Desiree. You know she is perfectly happy and committed to her intimate partner, Sophia, but you point out some of the attractive women sitting at the bar. She looks over and says you need to get your eyes checked, because she does not find them at all attractive. How can you explain her response?

• A) the commitment calibration hypothesis; Desiree feels threatened by the women's attractiveness.
• B) the justification motive; Desiree is justifying looking at the attractive women.
• C) cognitive complexity; Desiree is separating her attraction to her intimate partner and the women at the bar.
• D) derogation of alternatives; Desiree is protecting the positive view of her intimate relationship.

Analyze the effects of price changes on consumer surplus and total surplus in a market.

Recognize the relationship between supply curve movements, prices, and producer surplus.

Comprehend how market equilibrium is achieved and its significance to total surplus.

Identify factors leading to market failure and understand their implications on surplus and market efficiency.

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Definitions:

Agent's Incentives

The rewards, financial or otherwise, that motivate an agent, such as an employee or representative, to act in the principal's (such as an employer or company) best interests.

Buying Securities

The act of purchasing financial instruments such as stocks, bonds, and mutual funds with the intention of generating returns.

Offer

A proposal by one party to enter into a contract with another party, specifying the terms by which they are willing to engage in a transaction.

Price Based

A strategy or decision-making process that prioritizes pricing as the main factor, often used in marketing and sales strategies.