After approving a $100,000 expenditure for a new piece of capital equipment, deciding to spend $10,000 on a print advertisement seems inconsequential.This is an example of what type of effect?
A)Biased assimilation effect
B)Framing effect
C)Correspondence bias effect
D)Contrast effect
E)Availability heuristic

Question

Quizplus · Accepted Answer

The contrast effect occurs when the evaluation of a second option is influenced by a comparison with a first option. In this case, the decision to spend $10,000 seems less significant when compared to the prior decision to spend $100,000 on capital equipment.

After Approving a $100,000 Expenditure for a New Piece of Capital