Sometimes, We Observe Cases Where the Price of a Product

question 234

Multiple Choice

Sometimes, we observe cases where the price of a product rose and the quantity bought by buyers also increased. Such cases occur due to a violation of the

• A) Law of Demand.
• B) Law of Supply.
• C) allocative efficiency rule.
• D) ceteris paribus assumption.

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Definitions:

Programmed Decision

involves using established procedures or rules to address recurring problems or situations, facilitating consistency and efficiency in decision-making.

Escalation of Commitment

The phenomenon where people continue to invest in a decision or project despite evidence of its failure, often due to pride or fear of loss.

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions, often leading to innovative outcomes.

Programmed Decision

A decision-making process that follows a set of established procedures or rules, often used for routine and repetitive decisions.