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andrew11 [14]
4 years ago
7

John is going to buy a car. He wants a used Honda. The salesmen shows him one from 2012. John's not really positive how much the

car is worth to him. The sticker says 14,000 and they end up agreeing on 12,000. If the sticker had said 13,000, John might not have agreed to 12,000 - he might have become convinced that the car was only worth 11,000 to him. While he certainly did not just accept the starting price (he made some changes away from that starting point), his final agreed upon price (or final estimate of the car's value) was still biased/influenced by the first number he heard. John is relying on the:
Business
1 answer:
m_a_m_a [10]4 years ago
4 0

Answer:

anchoring bias

Explanation:

In business, anchoring bias happens when a consumer relies on pre-existing information (in this case sales price) to make their purchasing decisions. E.g. a sales promotion where a before price is set as the anchor to show that the after price (with the discount) is a really good deal.

In this case, John started to negotiate a sales price using the sticker price as an anchor, and ended up making a good deal because he got a $2,000 discount.

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Suppose you go to work at a company that pays $0.02 for the first day, $0.04 for the second day, $0.08 for the third day, and so
stellarik [79]

Answer:

$ 10,737,418.23

Explanation:

Given:

Amount paid on the first day = $ 0.02

Amount paid on the Second day = $ 0.04

Amount paid on the third day = $ 0.08

number of days, n = 29

also,

the wages is doubling daily

therefore,

The total of the wages for 29 days will be = $ 0.02 + $ 0.04 + $ 0.08 + ....

or we can form the relation as

= $ 0.02 × ( 2⁰ + 2¹ + 2² + 2³ + ........ )

or

= \sum_{k=0}^{29}2^n

or

= 0.01\times(2^{n+1}-1)

or

= 0.01\times(2^{29+1}-1)

or

= $ 10,737,418.23

5 0
3 years ago
Brian Burkhardt is planning to purchase a home and expects to borrow $291,400 as a mortgage. He can get a 30-year mortgage at a
Vsevolod [243]

Brian Burkhardt's monthly payments for this mortgage would be equal to $1,423.92.

<h3>How to calculate monthly payment?</h3>

Mathematically, the monthly payment for a mortgage can be calculated by using this formula:

M=P(\frac{r}{1-(1+r)^{-nt}} )

<u>Where:</u>

  • P is the principal.
  • r is the interest rate.
  • M is the monthly payment.
  • t is the time in years.
  • n is the number of times it's compounded.

<u>Note:</u> r = 4.10 = 0.041/12 = 0.0034

Substituting the given parameters into the formula, we have;

M=291400(\frac{0.0034}{1-(1+0.0034)^{-12\times 30}} )\\\\M=291400(\frac{0.0034}{1-0.3402} )\\\\M=291400(\frac{0.0034}{0.6598} )\\\\M=291400 \times 0.004887

M = $1,423.92.

Read more on monthly payment here: brainly.com/question/2151013

#SPJ1

4 0
2 years ago
If plant assets of a manufacturing company are sold at a gain of $1,000,000 less related taxes of $350,000, and the gain is not
alekssr [168]

Answer:

D. a gain of $1,000,000 and an increase in income tax expense of $350,000.

Explanation:

Given that

The gain is $1,000,000

And, the taxes is $350,000

So here the income statement that disclose the impact is that

There is a gain of $1,000,000 and also at the same time the income tax expense is rise by $350,000

Therefore the option d is correct

hence, the same would be considered

5 0
3 years ago
Which of the following government offices help individuals fund their college education?
devlian [24]
Office of federal student aid


8 0
3 years ago
Read 2 more answers
If soybean farmers know that the demand for soybeans is inelastic, in order to increase their total revenues they should a. use
charle [14.2K]

Answer: Option C

                                     

Explanation: In simple words, inelastic demand refers to a situation when the demand of the buyer does not change as per the price of the commodity. Thus, the price does not increase or decrease with decrease or increase in demand.

Hence the farmers should decrease the supply as there would be no profit for them to supply a product that has an inelastic demand.

5 0
3 years ago
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