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Table 6-3
The following table contains the demand schedule and supply schedule for a market for a particular good. Suppose sellers of the good successfully lobby Congress to impose a price floor $2 above the equilibrium price in this market.
-Refer to Table 6-3. How many units of the good are sold after the imposition of the price floor?
Availability Heuristic
A mental shortcut that relies on immediate examples that come to a person’s mind when evaluating a specific topic, concept, method, or decision.
Overconfidence Effect
The cognitive bias where an individual's subjective confidence in their judgments is greater than their objective accuracy.
Availability Heuristic
A cognitive shortcut based on the first examples that surface in one's thoughts when considering a particular topic, idea, strategy, or choice.
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