Recently, a bank was trying to decide what fee to charge for "expedited payments"—payments that the bank would transmit at a faster speed to enable customers to avoid late fees on cable TV bills, electric bills, and the like. To try to determine what fee customers were willing to pay for expedited payments, the bank conducted a survey. It was able to determine that many of the people surveyed already paid fees for expedited payment services that exceeded the maximum fees that they said they were willing to pay.
Analyze how does the bank's finding relates to economists' traditional focus on what people do, rather than what they say they will do.
Submit your response in a Microsoft Word document with the following specifications:
Font: Arial; Point 12
Spacing: Double
Page length: 2 pages
Evaluation Criteria:
The Analysis assessment will be evaluated using the following criteria:
Did you use the correct economic principle to analyze the bank's finding?
Did you establish the relation between your chosen economic principle and the bank's finding correctly?
Did you use macroeconomic terminologies in your analysis wherever possible?
Did your thoughts flow coherently?
Did you meet the page length requirements?
Did you adhere to Standard English grammar, spelling, and punctuation requirements?