Robert Cialdini reports the following event in his book Influence: The Psychology of Persuasion. The owner of an Arizona jewelry store was unable to move some fine-quality turquoise jewelry that was selling at low prices in the height of the tourist season. So, she instructed her assistant to cut the prices in half just before leaving on a business trip. But the assistant misunderstood and doubled the prices. When the owner returned a few days later, every piece had been sold. Does this story show that the Law of Demand does not hold in this instance? I think not. Explain what is going on here in a way that does not contradict the Law of Demand. (6)

Robert Cialdini reports the following event in his book Influence: The Psychology of Persuasion. The owner of an Arizona jewelry store was unable to move some fine-quality turquoise jewelry that was selling at low prices in the height of the tourist season. So, she instructed her assistant to cut the prices in half just before leaving on a business trip. But the assistant misunderstood and doubled the prices. When the owner returned a few days later, every piece had been sold. Does this story show that the Law of Demand does not hold in this instance? I think not. Explain what is going on here in a way that does not contradict the Law of Demand. (6)

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section: Chapter Questions

Problem 3SQP

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