David Is Trying to Calculate the Total Cost of the Groceries

question 35

Multiple Choice

David is trying to calculate the total cost of the groceries in his grocery cart. He has four apples for 35¢ each, five potatoes for 15¢ each, and three cake mixes for $2.25 each. He begins by thinking to himself, "Let's see, four times 35¢ is what? Two times 35¢ is 70¢, and then two times 70¢ is $1.40. And then what do I do next? Oh, yes, I need to know what 5 times 15 equals. I can't remember, but let's see if I can figure it out...." From an information processing perspective, David may have difficulty solving the problem because:

• A) He is using an inappropriate heuristic.
• B) His working memory capacity may be insufficient to hold and process all the information.
• C) He is encoding the problem incorrectly.
• D) He is demonstrating functional fixedness with regard to his knowledge of multiplication facts.

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Definitions:

Consumer Surplus

The gap between the total price consumers are ready to pay for a good or service and what they actually spend on it.

Grapefruit

A citrus fruit known for its slightly bitter and sour taste, commonly used in juices, culinary dishes, and as a diet staple.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus what they actually receive, typically representing profits.

Producer Surplus

The split between the rate producers are willing to settle for a good or service and the rate they actually collect.