Behavioral economists suggest that the reason why many consumers tend to stick to one brand in things that they often buy, like food items, is people's tendency to have the:

A. Anchoring effect
B. Mental accounting effect
C. Status quo bias
D. Confirmation bias


C. Status quo bias

Economics

You might also like to view...

The trade model described in the text demonstrates that countries can expand consumption by specializing in the production of goods and services in which they have a comparative advantage

In reality we do not see complete specialization in production. State three reasons why this is case.

Economics

If at the current level of product-specific service, consumers' value at $12 and the cost of retailers to provide the services is $12, which of the following is true?

A) the profit-maximizing level of profit-maximizing services is exactly double the current level B) the profit-maximizing level of profit-maximizing services is greater than the current level C) the profit-maximizing level of profit-maximizing services is less than the current level D) the profit-maximizing amount of product-specific services is being offered.

Economics

A, B, and C have the following preferences for fruits: A: apples > bananas > peaches B: bananas > apples > peaches C: apples > peaches > bananas Find the median voter's preference, if any, using a two-phase election

a. Preferences are intransitive. b. Apples c. Bananas d. Peaches

Economics

A bank with a leverage ratio of 9 to 1 has

A) $9 in assets for every $1 in liabilities. B) $9 in assets for every $1 in capital. C) $1 in assets for every $9 in capital. D) $1 in assets for every $9 in liabilities.

Economics