In Their Surveys of Consumers, Daniel Kaheman, Jack Knetsch and Richard

question 175

Multiple Choice

In their surveys of consumers, Daniel Kaheman, Jack Knetsch and Richard Thaler found that

• A)most people considered it unfair for firms to raise their prices because of an increase in their costs, but fair to raise their prices after an increase in demand.
• B)most people considered any increase in price to be unfair as it led to an increase in profits.
• C)most people believed that low-income people were hurt most by increases in prices.
• D)most people considered an increase in price by firms following an increase in their costs to be fair but believed it was unfair for firms to raise their prices because of an increase in demand.

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Definitions:

Listening

The active process of receiving and understanding messages during communication, essential for effective interpersonal interactions and learning.

Analyzing

The process of examining data or information to extract insights or conclusions.

Excite

To invoke a heightened emotional state or a sense of enthusiasm and eagerness in someone.

Minnesota Timberwolves

An American professional basketball team based in Minneapolis, Minnesota, competing in the NBA.