When the Relative Price of a Good Decreases,consumers Respond by Buying

question 157

Multiple Choice

When the relative price of a good decreases,consumers respond by buying

• A)a larger quantity of that good and a larger quantity of substitutes for that good.
• B)a larger quantity of that good and a smaller quantity of substitutes for that good.
• C)a smaller quantity of that good and a larger quantity of substitutes for that good.
• D)a smaller quantity of that good and a smaller quantity of substitutes for that good.

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Definitions:

Psychological Needs

Psychological needs refer to the intrinsic, essential desires that motivate behavior and contribute to mental health, such as the need for belonging, esteem, and self-actualization.

Comparison Level

A standard against which one evaluates the attractiveness and satisfaction of a relationship based on prior experiences and societal norms.

Interdependence Theory

The idea that satisfaction, investments, and perceived alternatives are critical in determining commitment to a particular relationship.

EVLN Model

A model representing the four responses employees can have to dissatisfaction at work: Exit, Voice, Loyalty, and Neglect.