This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose a survey is taken concerning car safety. According to the survey, people strongly desire ... (Read 90 times)

Davideckstein7

  • Hero Member
  • *****
  • Posts: 555
on: Jun 29, 2018
Suppose a survey is taken concerning car safety. According to the survey, people strongly desire safer cars and indicate they are willing to pay substantially more for safer cars.
 
  Using this information, one auto firm adds numerous safety features to its car, raising the price by several thousand dollars. Sales drop sharply, and the firm loses profits. What went wrong?

Question 2

Holding money as a medium of exchange to purchase goods and services and make payments is known as the
 
  A) spending demand for money.
  B) transactions demand for money.
  C) precautionary demand for money.
  D) asset demand for money.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

rosiehomeworddo

  • Sr. Member
  • ****
  • Posts: 306
Reply #1 on: Jun 29, 2018
Answer to Question 1

The automaker was relying on what people say rather than on what they do. An economic model would have tried to predict whether the expected gains from driving safer cars would have been great enough for consumers to pay the higher price. Economic models are models of behavior and not models about how people think or whether people's views directly affect their actions. Also, they did not account for other factors

Answer to Question 2

B


Davideckstein7

  • Member
  • Posts: 555
Reply 2 on: Jun 29, 2018
Wow, this really help

sultana.d

  • Member
  • Posts: 320
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

People have seen patterns in the stars since ancient times.[5] This 1690 depiction of the constellat People have seen patterns in the stars since ancient times.[5] This 1690 depiction of the constellat
Gurung people of Nepal Gurung people of Nepal
Critical thinking model for safety planning Critical thinking model for safety planning
The Nile Delta will be strongly affected by a rise in sea level of 50 cm The Nile Delta will be strongly affected by a rise in sea level of 50 cm
People with night eating syndrome may consume more than half their day's calories between 8 pm ... People with night eating syndrome may consume more than half their day's calories between 8 pm ...
By the People: A History of the United States, AP Edition By the People: A History of the United States, AP Edition
Video: Otitis Media

For a complete list of videos, visit our video library