The Availability of Substitutes Makes the Demand for a Good

question 177

True/False

The availability of substitutes makes the demand for a good less elastic.

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Definitions:

Framing Effect

A cognitive bias where people react differently based on the way information is presented to them, demonstrating how context and framing can influence decision making.

Representativeness Heuristic

A mental shortcut used to make judgments about the probability of an event under uncertainty, based on how similar it is to our typical idea of the event.

Framing

The process of presenting or constructing a concept, idea, or issue in a certain way to influence perception and judgment.

Representativeness Heuristic

A mental shortcut that involves judging the likelihood of an event or situation by comparing it to an existing prototype that already exists in our minds.