Which Factor Is the Most Important in Determining the Price

question 104

Multiple Choice

Which factor is the most important in determining the price elasticity of supply?

• A) the number of close substitutes
• B) the time period the producer has to adjust inputs and outputs
• C) the intensity of the need on behalf of consumers
• D) the number of alternative uses of the good

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Definitions:

Unpleasant Situation

A scenario or condition that is not enjoyable or is likely to cause discomfort, distress, or dissatisfaction.

Escape

A behavioral response aimed at getting away from a threatening or uncomfortable situation or stimulus.

Escape Response

A behavioral reaction aimed at moving away from an unpleasant or harmful stimulus, often considered a basic survival instinct.

Vicarious Reinforcement

A form of learning that occurs by observing the rewards and punishments of another's behavior, leading to changes in the observer's own behavior.