Joseph Gallo poured two glasses of wine from the same bottle but put a more expensive price tag on one glass than on the other. He let people test both and asked which they wanted; most wanted the more expensive glass, not knowing that both had come from the same bottle. This kind of experiment tells us that:
A. people probably want to drink wine for the sense of indulgence it gives them rather than for the taste.
B. preferences are given and are not shaped by society.
C. people never make rational choices.
D. decision making is costless.
Answer: A
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Coins were minted with serrated edges: a. to make it obvious that they were made of cheap alloys. b. so that cheaper metals did not have to be used
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The term substitution effect refers to the level of satisfaction or pleasure that people receive from their choices
a. True b. False Indicate whether the statement is true or false