Instead of Purchasing a Cheap New Car Every 5 Years

question 32

Multiple Choice

Instead of purchasing a cheap new car every 5 years and trading in the old one,a person buys a new,well-built car every 15 years,repairs it as needed,and then trades it in for a new one.This approach saves the person money,reduces the overall impact on the environment,and illustrates the value of___________ .

• A)recycling
• B)source reduction
• C)composting
• D)a life-cycle analysis

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Definitions:

Oligopolistic Pricing

A pricing strategy adopted by companies in an oligopoly, where a few firms dominate the market and prices are often influenced by the actions of competitors.

Monopolistic Pricing

This refers to the practice by a monopolist to set prices higher than in competitive markets because they control a large portion of the market for a particular good or service.

Horizontal Demand

A market demand situation where a small change in price leads to a large change in quantity demanded, often indicative of a highly competitive market.

Elastic Demand

is a situation where the demand for a product or service significantly changes in response to a change in price.