You are the CEO of a company. You have two customers (one larger and one smaller than your company).

They are asking for a 10% price reduction for the product/service you are providing. You are considering three possible options

a. Lower the price for the smaller customer only
b. Lower the price for the larger customer only
c. Lower the price for both customers

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

answerthe united states of america;

answer///the factor market;

answerindividual preferences are not revealed in the market for the good;