In Buying a Product, a Shopper Has a Choice of the Following

question 29

Multiple Choice

In buying a product, a shopper has a choice of the following amounts, all at the same price. Which is the best buy?

• A) 432 cc
• B) 1 pint
• C) 1 half-liter
• D) 450 mL

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Definitions:

Elastic Demand

A situation where the quantity demanded of a good or service changes significantly as its price changes.

Price Elasticity of Demand

An index showing the extent to which demand for a product changes in reaction to a variation in its price, where an elasticity exceeding one signifies a strong response.

Determinants

Factors or elements that contribute to producing a particular result or outcome.

Rebate Program

A promotional offer that refunds part of the purchase price of a product to the customer, usually after submitting a claim form with a receipt.