In Moving from the Measurement Model to the Structural Model

question 29

Multiple Choice

In moving from the measurement model to the structural model, .

• A) the exogenous constructs each become endogenous
• B) the emphasis shifts from the relationships between latent constructs and measured variables to the nature and magnitude of the relationships between constructs
• C) the error terms are correlated with each other
• D) the endogenous constructs become exogenous
• E) None of the above

---

Definitions:

Price Sensitive

A term describing how the demand for a product changes in response to price changes; consumers are highly reactive to changes in price.

Elastic Demand

A situation in which the demand for a product or service significantly changes in response to a change in its price.

Elasticity of Demand

A measure of how responsive the quantity demanded of a good or service is to a change in its price.

Total Revenue

The total income received by a firm from the sale of its goods or services before any costs or expenses are deducted.