Answer:
People behavior with lump sum amount:
The experimental evidence shows that people always expect to be treated fairly. When people are treated unfairly, then they will reject the offer regardless of the value of money. Thus, the statement that "should not generalize the evident resulted from $10 experiment. When the size of money is large then people will react differently from the evidence" is false.
The right answer for the question that is being asked and shown above is that: "The government will pay firms to give some workers extra pay to increase the total economy." <span>Is it wise for a firm to employ a worker at $20 per hour when another worker does the same job for $10 per hour? </span>
Answer:
$50,500
Explanation:
Calculation for by how much will Whispering Winds Corp. increase its van account
Using this formula
Increase in Van account =List price- Cash discount + Sales tax paid
Let plug in the formula
Increase in Van account=$52,000-$4,200+2,700
Increase in Van account=$50,500
Therefore by how much will Whispering Winds Corp. increase its van account will be $50,500
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.
