According to a Study of the Canadian Demand for Alcoholic

question 52

Multiple Choice

According to a study of the Canadian demand for alcoholic beverages, the price elasticity of demand for beer is -0.17.Which of the following could explain why the price elasticity of demand for beer is low?

• A)Beer is an inferior alcoholic beverage.
• B)More and more people are switching to wine and cocktails rather than beer.
• C)The price of beer is relatively low and for many people it is a habit forming product.
• D)There are only a few major suppliers of beer.

---

Definitions:

Decision-making Model

Structured approaches that individuals or groups follow to analyze situations and select among alternative courses of action.

Identify And Weigh

The process of recognizing various factors or options in a decision-making scenario and assessing their importance or impact to inform a choice.

Decision Criteria

The standards or benchmarks that guide the selection of alternatives in the process of making a decision.

Programmed Decisions

Decisions that are made in routine, structured situations by following established policies or rules.