The Demand for Ice Cream Is _____ Price Elastic Than

question 1

Multiple Choice

The demand for ice cream is _____ price elastic than the demand for frozen treats overall because _____.

• A) less; ice cream has fewer substitutes than frozen treats.
• B) more; ice cream has fewer substitutes than frozen treats.
• C) less; the scope of the market for ice cream is less broadly defined
• D) more; the scope of the market for ice cream is less broadly defined

Understand escalation of commitment, its causes, and effects.

Relate personality traits to the likelihood of escalation of commitment.

Recognize the treatment and impact of sunk costs in decision making.

Identify examples of cognitive biases in post-decision evaluations.

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Definitions:

Displacement

In physics, the movement of an object from one place to another or the volume displaced by an object in a fluid.

Repression

A defense mechanism where unpleasant thoughts, memories, or feelings are unconsciously excluded from awareness.

Defense Mechanism

A psychological strategy unconsciously used to protect a person from anxiety arising from unacceptable thoughts or feelings.

Denial

A defense mechanism in which confrontation with a reality is avoided by denying the existence of the problem or reality.