In a Snack Vending Machine, Consumers Can Select One of Many

question 181

Multiple Choice

In a snack vending machine, consumers can select one of many choices. These snacks are

• A) an ideal example of unitary demand.
• B) likely to have a price elasticity equal to 1.
• C) more likely to be price elastic.
• D) likely to have a price elasticity less than 1.
• E) more likely to be price inelastic.

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Definitions:

Reconstructive Memory Principle

The concept that memories are not played back exactly as they happened, but are reconstructed, or pieced together, from various sources.

Hindsight Bias

The tendency to believe, after an outcome is known, that it was predictable, despite there being little or no objective basis for predicting it.

Reconstruction Bias

a type of cognitive bias that involves memory errors in which individuals may add or omit details in their recollection of events.

Overconfidence Bias

The tendency to hold a subjective belief unreasonably confidently, making someone believe their ability, or the accuracy of their information, is higher than it actually is.