As a Result of a Decrease in the Price of a Hamburger

question 271

Multiple Choice

As a result of a decrease in the price of a hamburger, consumers buy more hamburgers and fewer frankfurters.This is an illustration of:

• A)consumer sovereignty.
• B)the income effect.
• C)the substitution effect.
• D)changing tastes and preferences.

Discuss the ethical responsibilities humans have towards nonhuman primates.

Analyze representations of primates in culture and media.

Acknowledge the contributions of primatology to broader understandings of culture and social behavior across species.

Understand the criteria for an optimal solution in transportation problems.

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Definitions:

Endowment Effect

The tendency people have to place higher valuations on items they possess (are endowed with) than on identical items that they do not possess; perhaps caused by loss aversion.

Behavioral Economists

Economists who study how psychological, social, cognitive, and emotional factors affect the economic decisions of individuals and institutions.

Inconsistent Anchoring

A cognitive bias where individuals rely too heavily on an initial piece of information (anchor) to make subsequent judgments but inconsistently adjust away from that anchor.

Prospect Theory

A behavioral economic theory that describes the way people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known.