The Data from Product Market Competitors Are Likely to Receive

question 12

Multiple Choice

The data from product market competitors are likely to receive greater weight when:

• A)product demand is not related to price changes
• B)the level of skill needed to perform the job is high
• C)the supply of labour is not responsive to changes in pay
• D)employee skills are not specific to the product market
• E)labour costs are a small share of total costs

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Definitions:

Cross-elasticity of Demand

A measure indicating how the demand for one good responds to a change in the price of another good.

Popcorn

A type of corn kernel which expands and puffs up when heated, commonly enjoyed as a snack.

Potato Chips

Thin slices of potato that are fried or baked until crispy and often flavored.

Income Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in consumers' income.