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Suppose Rebecca Needs a Dog Sitter So That She Can

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Suppose Rebecca needs a dog sitter so that she can travel to her sister's wedding.Rebecca values dog sitting for the weekend at $200.Susan is willing to dog sit for Rebecca so long as she receives at least $150.Rebecca and Susan agree on a price of $175.Suppose the government imposes a tax of $10 on dog sitting.The tax has made Rebecca and Susan worse off by a total of


Definitions:

Flow State

A psychological state in which a person is fully immersed in an activity, feeling energized and focused, losing track of time and self-consciousness.

External Goal

An objective or target set by external factors or individuals, as opposed to personal ambitions or desires.

Individual Identifies

The process by which a person recognizes or establishes their own characteristics, values, or beliefs as distinct from others.

Illusion Transparency

The tendency to overestimate the extent to which our personal mental state is known by others.

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