Researchers have found that tax increases may have a small effect in the quantity purchased because
A) individuals might forget about the tax (salience).
B) individuals are rational.
C) individuals are credit constrained.
D) individuals do not care about prices.
Question 2
Bounded rationality suggests that
A) individuals might make incorrect decisions because they are unable to consider all possible options.
B) individuals would rather have less choice to more choice.
C) rational decisions can only be made when choices are restricted.
D) individuals are happier when their choices are restricted or bounded.
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