Researchers Have Found That Tax Increases May Have a Small

question 83

Multiple Choice

Researchers have found that tax increases may have a small effect in the quantity purchased because

• A) individuals might forget about the tax (salience).
• B) individuals are rational.
• C) individuals are credit constrained.
• D) individuals do not care about prices.

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Definitions:

Mental Processes

Internal cognitive operations that include thinking, remembering, learning, and using language.

Schema-Based

Relating to or involving schemas, which are cognitive frameworks or concepts that help organize and interpret information.

Facilitated Communication

A controversial communication technique where a facilitator supports the hand or arm of a nonverbal person to assist them in communication.

Nonconscious

Relates to mental processes that occur without conscious awareness, influencing thoughts, feelings, and behaviors.