Status quo bias is the:

A. general resistance to change, often stemming from loss aversion.
B. inefficiency that stems from constant change.
C. inefficiency that stems from anchoring and adjustment.
D. general enthusiasm for change, often stemming from regression to the mean.


Answer: A

Economics

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Suppose that when the price per ream of recycled printer paper rises from $4 to $4.50, the quantity demanded falls from 800 to 600 reams per day. Using the midpoint formula, what is the price elasticity of demand (in absolute value) over this range?

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Economics