"As the Price of Apples Goes Up,the Demand for Apples

question 28

Multiple Choice

"As the price of apples goes up,the demand for apples goes down." The author of this statement

• A) implies that price and demand are unrelated.
• B) uses the word "demand" when he should use the word "supply."
• C) uses the word "demand" when he should use the words "quantity demanded."
• D) implies that demand and price have a direct relationship.

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Definitions:

Elimination-by-aspects

A decision-making model where choices are sequentially filtered based on specific criteria until one option remains.

Compensatory Decision-making

A decision-making process where individuals make choices by weighing the pros and cons of different options to compensate for weaker attributes by stronger ones.

Functional Fixedness

A cognitive bias that limits a person to use an object only in the way it is traditionally used, ignoring other possible uses.

Noncompensatory Modeling

A decision-making process where options are evaluated based on whether they meet predetermined criteria, without considering trade-offs between characteristics.