When Negotiating with a Potential Buyer,Tela Always Starts by Suggesting

question 1

Multiple Choice

When negotiating with a potential buyer,Tela always starts by suggesting a price that is much higher than she expects to receive.She's noticed that when she suggest a specific number,the buyer is likely to counter with an offer that is relatively close to her initial suggestion.This is an example of:

• A)a framing effect.
• B)a mental set.
• C)an availability effect.
• D)an anchoring effect.

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Definitions:

Federalism

A system of government in which power is divided between a central (federal) government and regional (state or provincial) governments.

Checks and Balances

A system in government where each branch has the power to check or limit the actions of the other branches to prevent any single branch from becoming too powerful.

Constitution

The fundamental set of laws and principles that outlines the governance structure, rights, and duties within a state or organization.

Necessary and Proper Clause

A clause in the U.S. Constitution granting Congress the power to pass all laws required and appropriate for executing its declared powers.