Figure 5-6 ​

question 68

Multiple Choice

Figure 5-6
​
-Refer to Figure 5-6. Using the midpoint method, what is the price elasticity of supply between points F and E?

• A)2.33
• B)0.67
• C)0.29
• D)0.43

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Definitions:

Representative Heuristic

A mental shortcut used in decision-making, where the likelihood of an event is estimated based on how similar it is to the stereotype of the event.

Correspondent Inference

The process by which observers infer the stable dispositions of others from their observed behavior, particularly when the actions are non-common or unexpected.

Representativeness Heuristic

The tendency to overestimate the likelihood that a target is part of a category if the person has features that seem representative of that category.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method, or decision.