Which sentence describes equilibrium in supply and demand? A cell phone manufacturing company decided to use a price-skimming strategy to enter the market. It set the price of its phones at $450. However, a range of other pre mium smartphones was already available in the market, and thus the product did not achieve a good demand. Eventually, when the price of the phone fell to $300, demand for the product increased and profits began to soar. Now, market research suggests that if the company reduced its price to $275, the quantity demanded would also rise. The rise in demand was predicted to be 30 percent. However, a profit study revealed that to increase demand, it would have to compromise on profits. Thus, the company decided to leave the price at $275. This would help them gain enough customers to make a profit while also manufacturing enough phones to meet demand.

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.

answermultidomestic strategy;