Question

Use behavioral economics to explain the following business practices. 1.Credit card companies often require stores to...

Use behavioral economics to explain the following business practices.

1.Credit card companies often require stores to charge the same price for customers using cash or credit. If they charge a lower price for cash, it must be called a “cash discount.”

2.The price of snow shovels didn’t increase in New York even with the recent snowstorm.

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