Match the heuristic with the scenario it best demonstrates. Consider the experiment. People are on the beach and they want ice cream. Vendor A fills up a 12oz cup with 8oz of ice cream (it's nearly half empty) while vendor B fills up a 5 oz cup with 7 oz ice cream (so the ice cream is over flowing). A. Survey results indicate that people's willingness to pay for the overfilled ice cream was higher than the under-filled. The interpretation was that people had a more positive feeling of satisfaction getting an overfilled cup. v availability heuristc vrepresentativeness heuristic When asked to rank the rates of different causes of death, people are more likely to rate firearm related deaths as higher than other B. causes because they watch and hear about firearms more frequently in the news (even though death by drug overdoses, for example, rank higher). v affect heuristic Tim is tough, hard-working and outdoorsy. Is he more likely to be c a farmer or a teacher? Many people would choose farmer based on the farmer stereo-type. In reality, it is far more likely that Tim is a teacher based purely on probability.
Match the heuristic with the scenario it best demonstrates. Consider the experiment. People are on the beach and they want ice cream. Vendor A fills up a 12oz cup with 8oz of ice cream (it's nearly half empty) while vendor B fills up a 5 oz cup with 7 oz ice cream (so the ice cream is over flowing). A. Survey results indicate that people's willingness to pay for the overfilled ice cream was higher than the under-filled. The interpretation was that people had a more positive feeling of satisfaction getting an overfilled cup. v availability heuristc vrepresentativeness heuristic When asked to rank the rates of different causes of death, people are more likely to rate firearm related deaths as higher than other B. causes because they watch and hear about firearms more frequently in the news (even though death by drug overdoses, for example, rank higher). v affect heuristic Tim is tough, hard-working and outdoorsy. Is he more likely to be c a farmer or a teacher? Many people would choose farmer based on the farmer stereo-type. In reality, it is far more likely that Tim is a teacher based purely on probability.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Economics
Match the heuristic with the scenario it best demonstrates.
Consider the experiment. People are on the beach and they want
ice cream. Vendor A fills up a 12oz cup with 8oz of ice cream (it's
nearly half empty) while vendor B fills up a 5 oz cup with 7 oz ice
cream (so the ice cream is over flowing).
A.
Survey results indicate that people's willingness to pay for the
overfilled ice cream was higher than the under-filled. The
interpretation was that people had a more positive feeling of
satisfaction getting an overfilled cup.
v availability heuristc
v representativeness heuristic
When asked to rank the rates of different causes of death, people
are more likely to rate firearm related deaths as higher than other
B. causes because they watch and hear about firearms more
frequently in the news (even though death by drug overdoses, for
example, rank higher).
v Jaffect heuristic
Tim is tough, hard-working and outdoorsy. Is he more likely to be
a farmer or a teacher? Many people would choose farmer based
C.
on the farmer stereo-type. In reality, it is far more likely that Tim
is a teacher based purely on probability.
Why is price discounting such an effective tool for sellers?
O Initially sellers do not know what buyers are willing to pay.
O A higher price becomes a point of reference but is quickly forgotten as consumers shop around.
Sellers anchor consumers to a higher price to make any amount lower seem like a good deal.
O Price discounting anchors buyers to the lowest price and consumers are more willing to pay the higher price.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc2a552af-377b-43c7-b0b7-7f9ff299ed7f%2F1674694b-e596-402d-a01a-80315f9635fe%2Ftbexgth_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Economics
Match the heuristic with the scenario it best demonstrates.
Consider the experiment. People are on the beach and they want
ice cream. Vendor A fills up a 12oz cup with 8oz of ice cream (it's
nearly half empty) while vendor B fills up a 5 oz cup with 7 oz ice
cream (so the ice cream is over flowing).
A.
Survey results indicate that people's willingness to pay for the
overfilled ice cream was higher than the under-filled. The
interpretation was that people had a more positive feeling of
satisfaction getting an overfilled cup.
v availability heuristc
v representativeness heuristic
When asked to rank the rates of different causes of death, people
are more likely to rate firearm related deaths as higher than other
B. causes because they watch and hear about firearms more
frequently in the news (even though death by drug overdoses, for
example, rank higher).
v Jaffect heuristic
Tim is tough, hard-working and outdoorsy. Is he more likely to be
a farmer or a teacher? Many people would choose farmer based
C.
on the farmer stereo-type. In reality, it is far more likely that Tim
is a teacher based purely on probability.
Why is price discounting such an effective tool for sellers?
O Initially sellers do not know what buyers are willing to pay.
O A higher price becomes a point of reference but is quickly forgotten as consumers shop around.
Sellers anchor consumers to a higher price to make any amount lower seem like a good deal.
O Price discounting anchors buyers to the lowest price and consumers are more willing to pay the higher price.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education