Which of the Following Statements Is True of Focal Attention

question 53

Multiple Choice

Which of the following statements is true of focal attention?

• A) Consumers process information which is outside the focus of their attention.
• B) Information is processed in peripheral vision during focal attention.
• C) Focal attention happens when consumers focus on a stimulus.
• D) Limited attentional resources are devoted to focal attention.
• E) Consumers' focal attention is unlimited.

---

Definitions:

Inelastic

Describes a situation where the demand or supply for a good or service is not significantly altered when the price changes.

Elastic

A characteristic of a product or service indicating that a change in price leads to a significant change in the quantity demanded or supplied.

Laffer Curve

An illustration of the relationship between tax rates and tax revenue, suggesting that there is an optimal tax rate that maximizes revenue.

Tax Rate Reductions

A decrease in the percentage at which income or transactions are taxed by governmental authorities.