People Are Often Influenced by Reference Groups to Which They

question 70

Multiple Choice

People are often influenced by reference groups to which they do not belong.________ refer to groups to which an individual wishes to belong.

• A)Membership groups
• B)Aspirational groups
• C)Peer groups
• D)Ethnic groups
• E)Advocacy groups

---

Definitions:

Perfectly Competitive Market

A market structure characterized by a large number of small firms, homogeneity of products, and free entry and exit, leading to optimal distribution of resources.

Market Demand

The combined amount of a product or service that every consumer in a market is prepared and capable of buying at different price points.

Elastic

A characteristic of a good or service whose demand or supply changes significantly when its price changes, indicating sensitivity to price adjustments.

Sunk Costs

Expenses that have been incurred and cannot be recovered, which should not impact future business decisions.