Suppose Whitney is willing to pay $200 to buy a new phone. Loss aversion implies that if Whitney already had just bought the phone, you would:

A. have to pay her exactly $200 to part with it.
B. not be able to get her to part with it for any amount of money.
C. have to pay her less than $200 to part with it.
D. have to pay her more than $200 to part with it.


Answer: D

Economics

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If the price elasticity of demand for automobiles is 2:

A. a 10 percent increase in price would result in a 10 percent decrease in quantity demanded. B. a 10 percent increase in price would result in a 20 percent increase in quantity demanded. C. a 10 percent decrease in price would result in a 20 percent decrease in quantity demanded. D. a 10 percent decrease in price would result in a 20 percent increase in quantity demanded.

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?If a good is offered free of charge, one would:

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When demand is perfectly elastic, marginal revenue is

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Economics