Because of "mental accounting:"
A. people are better able to process price changes than changes in product sizes.
B. people tend to be less risk averse.
C. people pay too little on their monthly credit card bills.
D. people isolate purchases and sometimes make irrational decisions.
Answer: D
Economics
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Suppose Katrina always buys exactly 5 Rain Forest Bars each week, regardless of whether they are regularly priced at $1 or on sale for $0.50 . Based on this information, what is Katrina's price elasticity of demand for Rain Forest Bars?
a. 0 b. -1 c. Infinity d. Answer cannot be determined
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Which of the following is not a source of funding available to? governments?
A. Taxes. B. Stock sales. C. User charges. D. Borrowing.
Economics