A car salesman first shows a customer a luxury model priced at $80,000, then immediately presents a standard model at $40,000. The customer perceives the $40,000 car as a much better deal, even though its market value is closer to $35,000. Which cognitive bias is at play here?

The correct answer to the question "A car salesman first shows a customer a luxury model priced at $80,000, then immediately presents a standard model at $40,000. The customer perceives the $40,000 car as a much better deal, even though its market value is closer to $35,000. Which cognitive bias is at play here?" is Option B: Anchoring Effect.

The other options — A) Confirmation Bias, C) Availability Heuristic, D) Dunning-Kruger Effect — are incorrect for this General Knowledge question. As explained above: The Anchoring Effect describes the cognitive bias where an individual's decision-making is influenced by a particular piece of information (the "anchor") presented early in the process. The initial h…