Isaac Is Trying to Decide How Often Shark Attacks Happen

question 73

Multiple Choice

Isaac is trying to decide how often shark attacks happen.He quickly remembers the many shows about shark attacks that he saw on television last week, so he decides that they must be common.Isaac's overestimation of the rate of shark attacks is an example of

• A)the hindsight bias.
• B)taking mental shortcuts.
• C)the self-serving bias.
• D)seeing patterns that do not exist.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to market equilibrium.

Quantity Supplied

The total amount of a particular good or service that producers are willing to provide at a given price.

Shortage

A market condition where the demand for a product or service exceeds its supply, often leading to higher prices or queuing.

Equilibrium Price

The price at which the quantity of a good demanded equals the quantity of the good supplied.