Figure 9-3 -Suppose That British Incomes Rise Relative to Incomes in the to Incomes

question 135

Multiple Choice

Figure 9-3

-Suppose that British incomes rise relative to incomes in the United States.Then,in Figure 9-3

• A)the demand curve will shift from D₁ to D₂
• B)the demand curve will shift from D₂ to D₁
• C)the supply curve will shift from S₁ to S₂
• D)the supply curve will shift from S₂ to S₁
• E)neither the demand for nor the supply curve will shift

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Definitions:

System I

Often referred to as "System 1," it is the fast, automatic, intuitive approach of the human brain to decision-making.

System II

Refers traditionally to the analytical, controlled, and effortful mode of thinking, as contrasted with the fast, automatic, intuitive processing of System I.

System I

A term often used in behavioral economics to describe the fast, instinctive, and emotional way of thinking, as opposed to slower, more deliberative thinking.

Availability

The ease with which a particular piece of information can be recalled from memory, often influenced by recent experience or emotional impact.