Suppose That the Equations S = 2P and D =

question 72

Multiple Choice

Suppose that the equations S = 2P and D = 6 - P represent a small country's home supply and home demand curves. Which of the following is the equilibrium price in autarky?

• A) $2
• B) $4
• C) $6
• D) $8

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Definitions:

Multitasking

The performance of multiple tasks simultaneously by an individual or machine.

Framing Effect

The influence on decision making caused by the way information is presented, rather than by the information itself.

Confirmation Bias

The inclination to seek out, understand, prioritize, and remember data in a manner that supports one's already established views or theories.

Overconfidence Effect

A cognitive bias where an individual's subjective confidence in their judgments is reliably higher than their objective accuracy, often leading to misjudgments and errors in decision-making.