If someone asked you to predict the price of gas in a month,and you decided to just guess by adding a few cents to the current price of gas,which you know,your answer would exhibit:
A)anchoring.
B)time inconsistency.
C)rational expectations.
D)None of these statements is true.

Question

Quizplus · Accepted Answer

Anchoring refers to the tendency of individuals to rely too heavily on the first piece of information they receive when making decisions. In this case, the individual is relying on the current price of gas as the anchor for their prediction, without considering other factors that may affect the price.

If Someone Asked You to Predict the Price of Gas