Suppose a Decrease in the Supply of Paper Results in an Increase

question 43

Multiple Choice

Suppose a decrease in the supply of paper results in an increase in revenue.This indicates that

• A)the demand for paper is inelastic.
• B)the demand for paper is elastic.
• C)the supply of paper is inelastic.
• D)the supply of paper is elastic.

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Definitions:

Options

Choices or alternatives available in any situation, allowing for decision-making based on preferences, needs, or desired outcomes.

Status Quo Bias

A preference for the current state of affairs, with changes perceived as a loss.

Omission Bias

A cognitive bias that involves the tendency to judge harmful actions as worse, or less moral, than equally harmful omissions (inactions).

Decisions

The method of selecting options through recognizing a decision, collecting information, and evaluating different solutions.