During the 1990s Positive Technological Change in the Production of Chicken

question 184

Multiple Choice

During the 1990s positive technological change in the production of chicken caused the price of chicken to fall.Holding everything else constant,how would this affect the market for pork (a substitute for chicken) ?

• A)The supply of pork would increase and the equilibrium price of pork would decrease.
• B)The demand for pork would decrease and the equilibrium price of pork would decrease.
• C)The demand for pork would increase because consumers could afford to buy more chicken and pork.
• D)The demand for pork would decrease and the equilibrium price of pork would increase.

Understand the fundamental differences between neoclassical and behavioral economics.

Recognize how behavioral economics explains the influence of cognitive biases and heuristics on decision making.

Identify the factors affecting human decision making, including the impact of framing, temptation, and future versus present preferences.

Understand the concept of "bounded rationality" and its significance in behavioral economics.

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Definitions:

System

An organized set of components or entities that are interrelated and work together to achieve a particular goal or set of goals.

Probability

A measure that quantifies the likelihood of a certain event or outcome to occur, expressed as a number between 0 and 1.

System

An organized set of interrelated components or elements that function together toward a common goal.

Average Time

The mean period taken for a task or process to occur; calculated by summing the total time taken and dividing it by the number of occurrences or instances.