According to a Study of the Price Elasticities of Products

question 49

Multiple Choice

According to a study of the price elasticities of products sold in supermarkets, the price elasticity of demand for toothpaste is estimated at -0.45.Which of the following could explain why the price elasticity of demand for toothpaste is so low?

• A)The toothpaste industry is highly competitive.
• B)Toothpaste is relatively inexpensive.
• C)Toothpaste is heavily endorsed by dentists.
• D)There are few close substitutes for toothpaste.

---

Definitions:

Conditioned Stimulus

An initially neutral trigger that, after being paired with an unconditioned stimulus, in time invokes a conditioned response.

Unconditioned Stimulus

A stimulus that inherently and instinctively induces a reaction without the need for previous learning.

Negative Punishment

The removal of a desirable stimulus after a behavior, which decreases the likelihood of the behavior occurring again.

Positive Punishment

Adding an undesirable stimulus to decrease a behavior; for example, scolding a pet to stop it from engaging in unwanted behavior.