Use the Status Quo Bias to Explain Why People Are

question 186

Essay

Use the status quo bias to explain why people are more likely to "super-size" their meal when asked than when not offered.

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Definitions:

Operating Profit

Profit earned from a firm's core business operations, excluding deductions of interest and taxes.

Break-even Price

The market price that a stock or commodity must reach for an investor to recover their initial investment without any profit or loss.

Mark-up

A percentage added to the cost of goods to cover overhead and profit, determining the selling price.

Retail Price

The price at which goods or services are sold to individual consumers in stores or online.