Use the Following to Answer Questions

question 65

Multiple Choice

Use the following to answer questions:
Figure: Price and Quantity 1
-(Figure: Price and Quantity 1) In the diagram, at a price of $80, the quantity demanded is ______, the quantity supplied is ______, and there is ______.

• A) 20; 80; a surplus of 60 units
• B) 80; 20, a surplus of 60 units
• C) 80; 20, a shortage of 60 units
• D) 20; 20; no surplus or shortage

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Definitions:

Framing

The way information or issues are presented and the effect this presentation has on perception and decision-making.

Availability

In psychology, it refers to the ease with which a particular thought or memory can be accessed from memory, often influencing judgments and decision-making.

Representativeness

A cognitive heuristic where an individual categorizes a situation based on how similar it is to the typical case or to their standard representation of such a case.

Heuristics

Mental shortcuts or rules of thumb that simplify decision making, often used unconsciously to make judgments and solve problems quickly.