​Match Each of the Following Situations with the Concept It

question 64

Multiple Choice

​Match each of the following situations with the concept it most clearly illustrates.
-satisficing

• A)Hugh needs to buy a new laptop.He searches online until he finds the first laptop that fits his price and performance needs, then he immediately buys it.
• B)In a hand of poker, Kevin makes a bid and Julie calls.Later, Kevin makes a higher bid, and Julie calls again.At the end of the hand, when Julie goes all in, Kevin's almost certain she has the better cards.However, because he's already invested so much in the hand, Kevin feels obliged to call.
• C)On paper, the candidate seems excellent, so Nina invites him for an interview, which goes swimmingly.Still, something about the guy seems "off" to Nina, and though she can't put her finger on what it is, she hires someone else.
• D)Simone knows that the laptop she's about to buy from the electronics store is both more expensive and of lower quality than a laptop she could buy online.However, she desperately needs a laptop immediately, so goes ahead with the purchase.

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Definitions:

Market Outcome

The result of interactions between buyers and sellers in a market that determines the quantity sold and the price at which it sells.

Price Levels

A summary measure of the current prices for goods and services across the whole economic output.

Shortage

A situation where the demand for a product exceeds its supply at a particular price.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in its price, with higher elasticity indicating greater sensitivity.