Terrance has decided to buy a new television.After looking at a few models on the internet and asking a few friends,he decides which television he wants.When he gets to the store,the sales clerk tells him that,for the same price,she can offer him a much better television than the one he chose.Terrance still chooses the one he had decided on before he came into the store.Terrance has made his decision based on
A) the availability heuristic.
B) the representative heuristic.
C) bounded rationality.
D) an algorithm.

Question

Quizplus · Accepted Answer

Terrance has made his decision based on bounded rationality, which means he had a limited amount of time and information to make the decision, and therefore, had to rely on his previous knowledge and preferences. Despite the sales clerk's suggestion of a better television, Terrance still went with the television he had originally decided on, indicating that he had already set criteria and preferences in his mind.

Terrance Has Decided to Buy a New Television