Auto Dealers Slash Prices at the End of the Model

question 18

Multiple Choice

Auto dealers slash prices at the end of the model year in response to deficient demand/excess inventory but restaurants facing the same problem slash production because

• A) auto customers are less price sensitive than restaurant customers
• B) price elasticity of demand (in absolute values)is higher for auto than restaurant customers
• C) price elasticity of supply is lower in auto than in restaurants
• D) restaurant food spoils quickly and is much more perishable
• E) price elasticity of supply in autos is smaller than the absolute value of price elasticity of demand but the reverse is true for restaurants

---

Definitions:

Radio Waves

Electromagnetic waves used in wireless communications, with longer wavelengths than infrared light.

Soft Tissue

Refers to tissues in the body that connect, support, or surround other structures and organs, excluding bones and cartilage.

Medulla

A part of the brainstem that controls vital bodily functions such as heart rate, breathing, and blood pressure.

Brainstem

The part of the brain that connects the cerebrum with the spinal cord and controls vital functions such as breathing, heart rate, and blood pressure.