In Behavioral Economics,salience Is Best Exemplified by

question 118

Multiple Choice

In behavioral economics,salience is best exemplified by

• A) consumers responding differently when posted prices increase rather than when prices increase because of sales tax increases.
• B) consumers responding the same regardless of how prices change.
• C) the end of a controlled experiment.
• D) consumers responding differently when income increases permanently rather than temporarily.

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Definitions:

Percentage Change

A calculation that shows how much a quantity has increased or decreased in percentage terms over a period.

Traceable Fixed Expense

Fixed costs that can be directly associated with a specific product, department, or segment of a business.

Net Operating Income

A company's income after all operating expenses, excluding taxes and interest, have been deducted from total revenue.

Price Reduction

A decrease in the selling price of a product or service, typically with the aim of increasing demand or sales volume.