The Director of the School Cafeteria Discovers That Students Like

question 105

Multiple Choice

The director of the school cafeteria discovers that students like chocolate chip cookies much better than molasses cookies.To sell the molasses cookies,she prices them at 25 cents each and continues to charge one dollar for the chocolate chip cookies.When students keep buying far more chocolate chip cookies,they are violating ________ theory,which is a ________ model of human decision making.

• A) prospect; normative
• B) expected utility; normative
• C) prospect; descriptive
• D) expected utility; descriptive

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Definitions:

Market Modification

Strategies businesses use to alter the perception or structure of a market to expand the potential customer base, which may include creating new use cases for products or targeting new demographics.

Innovation

The practical implementation of ideas that result in the introduction of new goods or services or improvement in offering goods or services.

Relative Advantage

The degree to which a new product or innovation is perceived as superior to existing alternatives, influencing its rate of adoption.

Bugchaser

An individual who purposely seeks to get infected with sexually transmitted diseases, particularly HIV, for various psychological reasons.