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.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.2P

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