According to Diffusion of Innovation, the Likelihood of People Adopting

question 18

Multiple Choice

According to Diffusion of Innovation, the likelihood of people adopting an innovation increases when:

• A) it produces results that others can see.
• B) the old behavior no longer results in the desired outcomes.
• C) a health care provider recommends it.
• D) it's covered by insurance.

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Definitions:

Income Elasticity

A measure of how much the quantity demanded of a good or service changes in response to a change in income, indicating how sensitive demand for the good is to income changes.

Normal Good

A type of good for which demand increases as the income of consumers increases.

Public Good

Every member of a society has access to certain goods or services without having to pay, thanks to provision by governmental agencies or private organizations or individuals, all without the motivation for profit.

Asymmetric Information

A situation where one party in a transaction has more or better information than the other, potentially leading to an imbalance in decision-making or outcomes.