Case-Based Critical Thinking Questions

question 125

Multiple Choice

Case-Based Critical Thinking Questions
Case 10-1
You have been having some difficulty in your economics class this semester,so you have requested support from a tutor.One topic that is giving you trouble at the moment is the price elasticity of demand.
-A change in price is met by an equal and opposite change in demand.This is an example of what kind of elasticity,according to your tutor?

• A) Unit elastic
• B) Perfect elastic
• C) Relative elastic
• D) Absolute elastic

Understand the concept of prototypes and their role in categorization.

Comprehend the various problem-solving strategies: insight, algorithms, and heuristics.

Recognize the influence of cognitive biases and heuristics on decision-making and judgments.

Distinguish between different types of cognitive heuristics: availability, representativeness, and belief perseverance.

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Definitions:

Common Value Auctions

Auctions in which the item for sale has a value that is equally unknown to all bidders, but ultimately, the value is the same for everyone.

Bidders

Individuals or entities that offer to pay a specific price for goods, services, or assets, often in the context of an auction.

Bid-rigging

A form of fraud where competing parties conspire to determine the winner of a bidding process.

Cartels

An agreement among competing firms to control prices or exclude entry of a new competitor in a market.