The Anchoring Effect
Consumers often measure whether they got a good deal on a purchase by the difference between the original price and a sales price. The bigger the difference is, the better the deal feels. The original price a consumer is exposed to becomes a reference point, or an anchor. The April 2021 issue of Page One Economics® Focus on Finance explains the anchoring effect and the role it plays in the decisionmaking process when it comes to what consumers are willing to pay for a good or service.
- High School / College Student Edition (pdf)
- High School / College Student Edition (html)
- Middle School Student Edition (pdf)
Teachers: Visit the Reading Q&As in our Econ Lowdown Teacher Portal to find the high school/college and middle school teacher editions (including an answer key) for this issue; to assign an online version of the student materials; and to collect student scores on the questions.
Keep your students in the know on timely economic issues with Page One Economics. Page One Economics provides a simple, short overview of a current economic event that offers students an opportunity to use close reading strategies. The Teacher’s Guide includes student questions and a teacher answer key, plus additional resources and lesson ideas for classroom, extra credit, or make-up assignments. You can subscribe via RSS feed or email.
If you have difficulty accessing this content due to a disability, please contact us at 314-444-4662 or firstname.lastname@example.org.