Question 1
Which one of the following is NOT an example of using heuristics when deciding what to buy?
◦ Using rules of thumb
◦ Weighing up the benefits of each item against its price
◦ Buying what's on offer
◦ Trial and error
Question 2
Which of the following is NOT one of the reasons for trying to estimate a demand function?
◦ To predict the effects of advertising
◦ To predict the effects of a growth in the market
◦ To predict the effects of price changes
◦ To predict the effects of a new production method