Eduardo Is at a Party Where He Doesn't Know Many

question 29

Multiple Choice

Eduardo is at a party where he doesn't know many people. He feels out of place until another party goer introduces himself. Liam is friendly, talkative, and cracks several jokes. He stands very close to Eduardo, even patting his shoulder several times. Although Eduardo isn't really a touchy-feely person, he doesn't mind because Liam is so sincere and welcoming. Eduardo even finds himself slapping Liam on the back while laughing at some of his jokes. Eduardo's behavior is an example of

• A) reflecting.
• B) compensating.
• C) accommodating.
• D) contradicting.

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Definitions:

Demand Coefficient

A measure that indicates the sensitivity or responsiveness of the quantity demanded of a good or service to changes in its price.

Normal Good

A good for which demand increases as the income of individuals or the economy grows, and decreases when income falls.

Income Responsiveness

The degree to which demand for a product or service changes in response to changes in consumer income.

Income Elasticity of Demand

A metric that gauges the sensitivity of demand for a product to shifts in the income of consumers.