A 10 Percent Decrease in the Price of a Pepsi

question 79

Multiple Choice

A 10 percent decrease in the price of a Pepsi decreases the demand for a Coca-Cola by 50 percent. The cross elasticity of demand between a Pepsi and Coca-Cola is

• A) 50.
• B) 10.
• C) 5.
• D) 0.20.

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Definitions:

Negative Reinforcement

A behavioral principle where the removal of an unfavorable condition strengthens a behavior.

Secondary Reinforcer

A stimulus that has become reinforcing through its association with a primary reinforcer, often used in behavior modification and learning.

Primary Reinforcer

An innately reinforcing stimulus like food or drink, which does not require learning to become pleasurable.

Secondary Reinforcer

A stimulus that becomes reinforcing through its association with a primary reinforcer, not through its own inherent value.