Suppose It Is Widely Believed That the Price of Flat-Screen

question 25

Multiple Choice

Suppose it is widely believed that the price of flat-screen, high-definition televisions will be lower next year. What will happen as a result of such beliefs?

• A) The demand for flat-screen TVs will increase now.
• B) The demand for flat-screen TVs will decrease next year.
• C) The demand for flat-screen TVs will decrease now.
• D) The demand for flat-screen TVs will not change now.

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Definitions:

Visual Image

A mental picture or representation of an object or scene that is generated by the brain.

Imaginal Scanning

A task in which a participant is asked to form a mental image and to scan over it from one point to another.

Heuristic Distortion

Cognitive shortcuts or biases that lead to a distorted perception or simplification of complex problems, often leading to errors in judgment.