Evidence from Experiments in Which Real People Play the Ultimatum

question 11

Multiple Choice

Evidence from experiments in which real people play the ultimatum game supports which idea about people

• A)They are rational wealth-maximizers.
• B)They tend to be driven by fairness, without regard for their own self-interest.
• C)They are driven by both fairness and self-interest.
• D)They have trouble calculating their own levels of wealth.

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Definitions:

Demand

The total quantity of goods or services that consumers are willing and able to purchase at various prices during a specific time period.

Elastic

Describes a situation where the demand for a good or service significantly changes in response to changes in price.

Elasticities

Measures of how much the quantity demanded or supplied of a good responds to changes in price, income, or other factors.

Elasticity

A measure of how much the quantity demanded or supplied of a good changes in response to a change in price.