If a and B Are Substitutes and the Cost of a Factor

question 149

Multiple Choice

If A and B are substitutes and the cost of a factor of production used in the production of A increases,then the price of

• A)B falls,but the price of A rises.
• B)B rises,but the price of A falls.
• C)A falls,and the price of B will stay unchanged.
• D)A and B fall.
• E)A and B rise.

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Definitions:

Lowball Technique

A persuasive strategy where an initially favorable offer is made, then changed to make it less favorable once initial commitment is achieved.

Lesser Request

A technique in persuasion and social influence where a more modest request is made after a larger one has been turned down, increasing the likelihood of compliance.

Door-In-The-Face Technique

A persuasion strategy where a large, possibly unreasonable request is made first with the expectation of refusal, followed by a smaller, more reasonable request.

Openness To Differing Opinions

Openness to Differing Opinions refers to the willingness to consider and value perspectives and ideas different from one's own.