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Slide 10

The differences in decision-making from balancing effects and weighing evidence are shown on a graph. Weighing evidence permits more conduct than blancing effects. The graph has price (p) on the x-axis and quantity (q) on the y-axis. There are two lines starting from the origin on the graph: one is at a 45 degree angle from the x-axis labelled "Weighing evidence" and the other lies above it at approximately a 60 degree angle from the x-axis labelled "Balancing effects". The area below the "Weighing evidence" line is red and shows where "Both condemn practice." The area between the two lines is purple and labeled "Balancing condemns but weighing allows practice." The area above the line labeled "Balancing effects" is where "Both allow practice".

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Updated June 25, 2015

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