The certainty effect shows that

A) people are overconfident about their choices.
B) people prefer certain outcomes to uncertain outcomes even when the expected value of the uncertain outcome is lower.
C) people prefer certain outcomes to uncertain outcomes even when the expected value of the uncertain outcome is higher.
D) people prefer certain outcomes to uncertain outcomes even when the expected values are the same.


C

Economics

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Suppose that the supply of insulin is perfectly elastic and the demand for insulin perfectly inelastic. Then the result of an excise tax would be

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Economics