A Perceptual Bias Is the "Sense Making" Mechanism Through Which

question 12

True/False

A perceptual bias is the "sense making" mechanism through which people interpret their environment so they can respond appropriately.

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Definitions:

Long Run

A period in which all factors of production and costs are variable and companies can enter or exit an industry.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various price levels at a given time.

Substitutes

Goods or services that can be used in place of each other; when the price of one goes up, the demand for the other can increase.

Elastic Demands

A market situation where the quantity demanded of a good or service significantly changes in response to a change in price.