Consider the Image Below

question 143

Essay

Consider the image below. Explain what the graph depicts. What would cause a shift from D₁ to D₂? What would cause a shift from D1 to D₃?

---

Definitions:

Zeigarnik Effect

A tendency to experience automatic, intrusive thoughts about a goal whose pursuit has been interrupted.

Temporal Discounting

The tendency to value immediate rewards more highly than future rewards, affecting decision-making and impulse control.

Delay Gratification

The capacity to withstand the lure of an instant gratification in favor of a future, potentially more significant, reward.

Pocket Money

Typically refers to a small amount of money given by parents to their children on a regular basis to spend as they wish.