How Does a Lower Price Alleviate the Problem of Excess

question 52

Multiple Choice

How does a lower price alleviate the problem of excess supply?

• A) A lower price increases the number of potential sellers and the number of potential buyers.
• B) A lower price increases the number of potential sellers and decreases the number of potential buyers.
• C) A lower price decreases the number of potential sellers and the number of potential buyers.
• D) A lower price decreases the number of potential sellers and increases the number of potential buyers.

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Definitions:

Vision

A mental image of a possible and desirable future state of the organization.

Framing Error

A mistake that occurs when information is presented or perceived in a way that biases or distorts decision making.

Sunk Cost Bias

The decision to continue an investment based on past investments of time, effort, and/or money.

Projection Bias

The tendency to mistakenly assume that others share one's current thoughts, feelings, or attitudes.