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:

Schemes

Cognitive structures in developmental psychology that help individuals organize and interpret information.

Cognitive Development

The process of growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding throughout the lifespan.

Infant

A very young child or baby, typically from birth to one year old.

Cognitive Capabilities

The mental skills and abilities related to understanding, thinking, learning, and remembering.