In the Long Run, When Demand Increases, Equilibrium Price Unambiguously

question 25

Multiple Choice

In the long run, when demand increases, equilibrium price unambiguously goes

• A) up
• B) down
• C) Neither answer is correct

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Definitions:

Anchoring

Anchoring is a cognitive bias in decision-making where an individual relies too heavily on an initial piece of information (the "anchor") to make subsequent judgments or estimates.

Affect-Infusion Model

A model suggesting that the mood or affective state of an individual can influence their cognitive processes and decision-making.

Moods Modify

The alteration of emotional states that can impact an individual's perception, judgement, and interpersonal interactions.

Congruent

In harmony or agreement; matching in character or kind.