One Reason That Consumers and Businesses Might Not Act Rationally

question 142

Multiple Choice

One reason that consumers and businesses might not act rationally is

• A) it is difficult to obtain enough information about the elasticities of demand and supply.
• B) they may not realise their actions are inconsistent with their goals.
• C) consumer tastes change constantly.
• D) they do not always value fairness when they make choices.

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Definitions:

Semantic Memory

Semantic memory is a type of long-term memory that involves the storage of general knowledge and facts about the world, not linked to personal experience.

Working Memory

A cognitive system responsible for temporarily holding information available for processing.

Crystallized Intelligence

The capacity to apply acquired knowledge and past experiences to tackle problems and adjust to novel circumstances.

Alzheimer's Disease

A progressive neurodegenerative disorder characterized by memory loss, cognitive decline, and personality changes, leading to severe dementia.