Use the Following to Answer Questions

question 139

Multiple Choice

Use the following to answer questions:
Figure: Price Ceilings and Consumer Valuation
-(Figure: Price Ceilings and Consumer Valuation) Refer to the figure. Suppose a price ceiling of $3 goes into effect. If the goods sold are allocated only to the highest-value users, the total consumer surplus in the market would be:

• A) $180.
• B) $30.
• C) $120.
• D) $150.

Discuss the phenomenon of illusory correlation and its implications for societal perceptions.

Understand the mechanism and effects of the gambler's fallacy and "hot hand" misconception.

Analyze the influence of confirmation bias on information processing and belief formation.

Comprehend the importance of distinguishing between intentional and unintentional behaviors in attributions.

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Definitions:

Generalizations

A process in reasoning where broader conclusions are drawn from specific cases or examples.

Stereotyping

The act of ascribing generalized and often inaccurate or oversimplified characteristics to members of a group.

Prejudice

Preconceived opinion that is not based on reason or actual experience, often directed towards people or groups based on their identity.

Evidence

Information or facts that are used to support the validity of an assertion, argument, or claim.