In Behavioral Economics,salience Is Best Exemplified by

question 118

Multiple Choice

In behavioral economics,salience is best exemplified by

• A) consumers responding differently when posted prices increase rather than when prices increase because of sales tax increases.
• B) consumers responding the same regardless of how prices change.
• C) the end of a controlled experiment.
• D) consumers responding differently when income increases permanently rather than temporarily.

---

Definitions:

Interest Rate

A percentage that represents the cost of borrowing money or the profit earned from an investment.

Equivalent Interest

An interest rate or yield that is calculated to be comparable across different compounding periods or payment schedules.

Nearest 0.01%

This refers to rounding calculations to the closest hundredth of a percent, commonly used for precision in interest rates and financial metrics.

Nearest 0.01%

Rounding or approximating a numerical value to the closest hundredth of a percent.