Noah Thinks of Himself as an Excellent Negotiator When Purchasing

question 249

Multiple Choice

Noah thinks of himself as an excellent negotiator when purchasing cars. Two months after Noah's purchase, his brother-in-law gets the same model for $1000 less! According to cognitive dissonance theory, Noah:

• A) will ask his brother-in-law to come along with him the next time he purchases a car.
• B) will decide that he was wrong and that he isn't that good at negotiating a good car price.
• C) will begin to dislike his new car, noticing all the little details that bother him.
• D) will decide that he is glad he had the car for those two months, even though prices soon dropped.

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Definitions:

Commodity 2

Typically refers to a basic good used in commerce that is interchangeable with other goods of the same type.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can afford given their income and the prices of the goods.

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given income and prices.

Commodity 1

A basic good used in commerce that is interchangeable with other goods of the same type, typically referred to when discussing market transactions.