If price is unchanging across the firm's entire production range, then for the firm selling bagels at $0.40 each,

The biggest problem caused by a deflation is that

A) prices fall. B) wages fall. C) interest rates rise. D) people cannot repay their debts.

Some high-end retail stores that distribute mail-order catalogs will prominently offer some very high priced goods for sale (for example, a luxury sports car with gold-plated interior trim) in addition to their regular line of merchandise

Behavioral economists argue that the stores do not really plan to sell these goods, but they use these items to provide the customers with a high reference point for the prices of the other goods in the catalog. This practice is an example of: A) the ultimatim game. B) loss aversion. C) anchoring. D) none of the above