-In the Above Figure,the Movement from Point a to Point

question 130

Multiple Choice

-In the above figure,the movement from point a to point b reflects

• A) a decrease in the price of pizza.
• B) an increase in the demand for pizza.
• C) an increase in the number of people who eat pizza.
• D) an increase in the price of the tomato sauce used to produce pizza.
• E) a decrease in the number of firms producing pizza.

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Definitions:

Fairness

A person’s opinion as to whether a price, wage, or allocation is considered morally or ethically acceptable.

Systematic Errors

Suboptimal choices that (1) are not rational because they do not maximize a person’s chances of achieving his or her goals and (2) occur routinely, repeatedly, and predictably.

Self-Interested

Acting in a way that is most beneficial to oneself, often used in the context of economic behavior assuming individuals act to maximize their own welfare.

Willpower

The ability to resist short-term temptations in order to meet long-term goals.