Suppose You Manage a Convenience Mart and Are in Charge

question 179

Multiple Choice

Suppose you manage a convenience mart and are in charge of ordering products,but the home office sets the prices.In your area,the income elasticity of demand for peanut butter is -0.5.Because of local factory closings,you expect local incomes to decrease by 20% on average in the next month.As a result,you should stock _____ peanut butter.

• A)20% more
• B)5% more
• C)10% more
• D)10% less

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Definitions:

Narcissism

A character feature marked by an exaggerated perception of self-worth and a strong desire for adulation and focus.

Relationship Satisfaction

The degree to which individuals feel fulfilled and content within their romantic, familial, or platonic relationships.

Constant

A situation or state of affairs that does not change.

Investment Model

Theory that uses three factors—satisfaction, alternatives, and investments—to explain why people stay with their long-term relationship partners.