Leaving a large tip at a restaurant to which you will never return is:
A) a manner of behavior that only traditional economic theory can explain.
B) an example of irrational behavior under the theory of behavioral economics.
C) an example of why an alternative theory to the basic theory of consumer behavior is needed to explain this sort of behavior.
D) a way of increasing utility, which places the consumer in a higher indifference curve.
Correct Answer:
Verified
Q1: Behavioral economics is the study of:
A) rational
Q2: The assumption that consumers have clear preferences
Q3: A reference point may be anchored on:
A)
Q5: Suppose that after an increase in price,
Q6: In traditional economic theory, producers are assumed
Q7: In the classroom experiment where a mug
Q8: The assumption that consumer choices are utility-maximizing
Q9: In traditional economic theory, consumers are assumed
Q10: In the classroom experiment where a mug
Q11: An example of a reference point is
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