Suppose That a Quiz Show Host Asks a Contestant Which

question 38

Multiple Choice

Suppose that a quiz show host asks a contestant which city in France has the greater population, Paris or Nantes. The contestant immediately responds, "Paris." According to the discussion of decision making,

• A) this is an example of an illusory correlation.
• B) people usually have difficulty in answering questions that use the anchoring and adjustment heuristic.
• C) this is a variant of the representativeness heuristic.
• D) this is an example of the recognition heuristic.

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Definitions:

Price Elasticity

The degree to which consumer demand for a product reacts to shifts in its price, showcasing the level of consumer sensitivity to pricing alterations.

Long Run

A period in which all inputs, including physical capital and labor, can be fully adjusted, allowing for analysis of equilibrium and efficiency without the constraints of fixed factors.

Soft Drinks

Non-alcoholic beverage options, typically carbonated, that include flavors and sweeteners, such as colas and fruit-flavored sodas.

Price Elasticity

A metric indicating the sensitivity of an item's demand or supply levels to variations in its cost.