The correct answer would be, Mental Set.
Charlie's shortsightedness best illustrates the consequences of Mental Set.
Explanation:
In Psychology, a mental set is basically a framework. This framework is for thinking about the problem. The mental state can be shaped either by:
Mental set used to solve a problem in the right manner will lead to creativity and problem solving proficiency but using it in a wrong manner will lead to the creation of problems.
As given in the example in this question, Charlie used to cheat in exams when he was in prior classes, but now as he proceeds to the next classes, it has not become easy for him to cheat easily, but he started to find out other ways to cheat which would not be difficult for him. So this is the mental set of Charlie, that he will cheat rather than studying hard, and for this mental set, he would do wrong things.
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Answer:
less, less
Explanation:
then the substitution effect results in the person buying less of the good and the income effect results in the person buying less of the good.
Due to price rise, consumer will shift to cheaper goods, therefore the rate at which people buying beer will decrease. The consumer's real purchasing power has decreased and since beer is a normal good, the decrease in purchasing power will lead to a decrease in the quantity of beer demanded by the consumer
