Question

QUESTIONS Behavioral economics A Studies why people choose not to optimize B. Studies why people optimize Studies why people sometimes don't optimize D. Studies why people behave badly when buying or selling QUESTION 6 A market A. Always involves the personal exchange of goods for money B. Allows interactions betweelsbuyers and sellers Always takes place at a physical location D. Has no influence of prices QUESTION 7 if the price of automobiles were to increase substantially, the demand curve for Rason would most like A Shift leftward B. Shift rightward C. Remain unchanged D. Become steeper

Answer 1

Behavioral economics study why people behave optimally. It is the study of consumer behavior in different markets at different situations. People always optimize to maximize the benefits. So, the correct answer is 'Option B'.

A market is a platform at which buyers try to find sellers of the goods they want and sellers want to sell their products to the buyers. A market helps the buyers and sellers to interact and trade. So, the correct answer is 'Option B'.

Since automobiles and gasoline are complements of each other, an increase in the price of automobiles will reduce the demand of automobiles which in turn will reduce the demand of gasoline. So, the demand curve of gasoline will shift leftwards. Therefore, the correct answer is 'Option A'.