According to a Study of the U

question 47

Multiple Choice

According to a study of the U.S.demand for alcoholic beverages, the price elasticity of demand for beer is -0.30.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.

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Definitions:

Probability of Failure

This refers to the likelihood that a system or component will fail to perform its intended function within a specified period.

Doomsday Machine

A hypothetical construct, often used in discussions of nuclear strategy, that can automatically trigger an annihilating response if a nation is attacked.

Preemptive Nuclear Attack

A nuclear strike launched with the belief that an enemy is about to carry out a nuclear attack.

Credible Threat

A concept in game theory where a threat or strategy is believable and likely to be carried out by a player.