One Reason the Demand for Electricity Is Probably More Price

question 92

Multiple Choice

One reason the demand for electricity is probably more price elastic than the demand for table salt is that

• A)people react to a change in the price of electricity in the long run but react to a change in the price of salt in the short run.
• B)there are more substitutes for electricity than for table salt.
• C)people react to a change in the price of electricity in the short run but react to a change in the price of salt in the long run.
• D)a change in the price of electricity is likely to be temporary compared to a change in the price of table salt.
• E)electricity takes up a larger proportion of one's income than does table salt.

---

Definitions:

Situational Influences

External factors that affect consumer behavior at the time of purchase, such as physical environment, social surroundings, and time.

Selective Retention

The process by which individuals remember only information that reinforces their personal beliefs and attitudes, ignoring contradictory evidence.

Postpurchase Stage

The phase after purchasing a product or service where consumers may evaluate their decision, experience satisfaction or dissatisfaction, and engage in behavior such as feedback or repurchase.

Selective Perception

How individuals selectively focus on certain parts of media communications that resonate with their desires, while overlooking contrary opinions.