When a Third Party Pays a Larger and Larger Share

question 215

Multiple Choice

When a third party pays a larger and larger share of the purchasing price of a good, economic theory indicates that the

• A) demand for the good will decline.
• B) consumers of the good will have less and less incentive to economize on its use.
• C) suppliers of the good will have a stronger incentive to provide the good at low prices.
• D) prices of the good will tend to decline with the passage of time.

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Definitions:

Type A

Type A refers to a personality type characterized by competitiveness, high ambition, aggressiveness, impatience, and a sense of urgency, often associated with a higher risk of heart disease.

Coronary Heart Disease

A condition characterized by the narrowing of the coronary arteries, which can lead to chest pain, heart attacks, and other cardiac problems.

Secondary Appraisal

The second step in assessing a stressor, which involves estimating the resources available to the person for coping with the threat.

Stressor

An event, situation, or stimulus that causes stress or discomfort, requiring an adjustment or response from the individual.