Use the Following Information to Answer the Following Questions

question 105

Multiple Choice

Use the following information to answer the following questions.
Market for used cars:
Demand: Q_d = 154,000 - 86P
Supply: Q_s = -100 + 14P
-What would be the quantity supplied if a price floor is set at $100?

• A) 100
• B) 154,100
• C) 1,541
• D) 21,474
• E) 1,300

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Definitions:

First Instinct Fallacy

The false belief that it is better not to change one’s first answer on a test even if one starts to think that a different answer is correct.

Upward Counterfactual Thinking

The process of imagining better alternatives to past events, which can have various emotional or motivational effects.

Downward Counterfactual Thinking

Generating thoughts of how situations could have been worse, which can sometimes improve emotional state.

Statistical Regression

The statistical tendency for extreme scores or extreme behavior to be followed by others that are less extreme and closer to average.