Which of the Following Would Cause the Price Elasticity of Demand

question 94

Multiple Choice

Which of the following would cause the price elasticity of demand for a variable input to be greater?

• A) The smaller the price elasticity of demand for the final product
• B) The longer the time period being considered
• C) The smaller the proportion of total costs accounted for by the variable input
• D) The harder it is for a variable input to be substituted for by other inputs

Comprehend the economic and psychological impacts of purchase timing and sales promotions.

Appreciate the role of information and ratings in consumer decision making.

Understand problem-solving variations in purchase decisions.

Recognize the significance of product knowledge and involvement in consumer behavior.

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Definitions:

Functional Analysis

An assessment strategy in behavior therapy that identifies antecedents, behaviors, and consequences to understand and address problematic behaviors.

Contingency Management

A behavioral therapy technique that modifies behavior by changing the consequences of that behavior, often through rewards or punishments aimed at increasing or decreasing certain behaviors.

Stimulus Control

A behavioral intervention technique to limit exposure to cues that trigger undesirable behaviors.

Biofeedback

A technique that teaches individuals to control physiological processes such as heart rate, muscle tension, and brainwave patterns, through real-time feedback from monitoring devices.