The Below Figure Shows the Demand and Supply Curves in the Market

question 18

Multiple Choice

The below figure shows the demand and supply curves in the market for gasoline. The price and quantity at the point of intersection of the demand and supply curves is $30 and 300 gallons respectively.Figure 3.6

-In the market for eggs, a removal of the price ceiling on eggs results in:

• A)an increase in the demand for eggs.
• B)farmers supplying more eggs to the market.
• C)consumers demanding a larger quantity of eggs.
• D)farmers supplying less eggs to the market.
• E)consumers demanding a smaller quantity of eggs.

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Definitions:

Anchoring and Adjustment Bias

A cognitive bias where an initial piece of information (anchor) significantly influences subsequent judgments or decisions.

Confirmation Error

A cognitive bias involving the tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Representativeness Bias

A cognitive bias where individuals make judgments about the probability of an event based on how much it resembles their existing stereotypes.

Escalating Commitment

The phenomenon where people increase their investment or involvement in a decision or action despite facing negative feedback or outcomes.