Answer and Explanation:
1> Let's solve the standard economic model first based on rational expectation.
Since the medium willingness to pay is $5, we can assume half the people have more willingness to pay than $5 and half the people have less. (Since it's a large class, we can assume this)
So, half of them who got the mug will sell, according to standard theory.
2> Now behavioral economist will disagree. People who got the mug, get an emotional and nostalgic attachment with it, thus they would not like to sell it because they get utility after having something, so by behavioral theory, less than half of pupils who got the mug will sell.
Answer:
In the following situation:
Reethika is in a meeting and has an important question. The only coworker who can answer the question is in a different meeting.
The only way Reethika can get the answer without disturbing either meeting is:
Sending a direct text message to her co-worker's cellphone.
Explanation:
First of all, she can't send someone to look for her because that would disturb both meetings. Also, if she calls her that is also going to disturb both meetings. The only way she has is to send an e-mail or an SMS to her co-worker. However, that depends on the effect people can take upon her. Nevertheless, text messages like e-mails, SMS, or direct messages don't have a high level of disturbance. Considering most people have their cellphones in silence mode.
Answer:
to survive today, organizations need to be present in both the online and physical markets
Explanation:
So far Amazon has dominated the online space when it comes to buying products and services. But the scenario in the question makes it clear that having only one channel open to customers (online) is not sufficient.
It is necessary to diversify by having physical stores in addition to online stores.
Some consumers for example will want to examine what they are buying before paying, others will not have the patience to wait for delivery of goods. So the physical store will serve these segments of customer's.
