How Will Consumers Generally React to an Increase in the Price

question 14

Multiple Choice

How will consumers generally react to an increase in the price of butter?

• A) They will purchase a larger quantity of butter.
• B) They will substitute other goods like margarine for the more expensive butter.
• C) They will reduce their purchases of substitute goods like margarine.
• D) They will continue purchasing the same quantity of butter at the higher price.

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Definitions:

Loose Culture

Describes a society or social group that has relatively relaxed norms and behaviors, allowing a wider range of acceptable behaviors and beliefs among its members.

Collectivist

Pertaining to cultures or societies that value the group over the individual, emphasizing community and collaboration.

Tight

In the context of culture, refers to societies with strict norms, social sanctions, and expectations for conformity.

Complex

Refers to something that is composed of many interconnected parts, resulting in a system that is difficult to analyze or understand fully.