When Consumers Are Repeatedly Exposed to Higher Reference Prices, Their

question 86

True/False

When consumers are repeatedly exposed to higher reference prices, their internal reference prices shift toward the higher external reference prices.

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Definitions:

Unemployment Rate

The proportion of people in the workforce who are unemployed and seeking work actively.

Employed

The state of having a paid job or being engaged in a profitable activity.

Unemployed

Individuals who are willing and able to work but cannot find employment.

Inflation Rate

measures the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.