If the Relative Price of One Unit of Good X

question 119

Multiple Choice

If the relative price of one unit of good X is 5 units of good Y, then it follows that the absolute price of good X can be __________ and the absolute price of good Y can be __________.

• A)$20,000; $10,000
• B)$40,000; $8,000
• C)$30,000; $5,0000
• D)$5,000; $40,000

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Definitions:

Low Ball Tactic

A persuasion and selling technique where an initially attractive offer is made to get a commitment, which is then made less attractive before the deal is closed.

Social Influence

The effect that the words, actions, or mere presence of other people have on our beliefs, feelings, attitudes, or behavior.

Heuristic-Systematic Model

A dual-process theory of persuasion that suggests there are two ways people process information: through heuristics (quick, automatic thinking) and systematically (deep, thoughtful analysis).

Systematic Processing

A mode of thinking in which individuals take a more analytical and comprehensive path to evaluating information, as opposed to relying on general impressions.