Jonathan Visits IJaunty

question 84

Multiple Choice

Jonathan visits iJaunty.com, a travel website, for information on the top-10 tourist destinations in the United States.When he exits the website, an ad for Emblazon cell phones appears on his computer screen, inviting him to purchase the cell phone at a discounted price.This ad is an example of

• A)content sponsorship.
• B)a pop-up.
• C)regular sponsorship.
• D)functional sponsorship.
• E)a pop-under.

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Definitions:

Normal Good

A good or service whose consumption increases when income increases and falls when income decreases, price remaining constant.

Marginal Utility

Marginal utility is the additional satisfaction or benefit received by consuming one more unit of a good or service, often decreasing as consumption increases.

Reallocating Expenditures

The process of adjusting how money is spent across different goods, services, or categories to optimize outcomes or achieve desired objectives.

Substitution Effect

(1) A change in the quantity demanded of a consumer good that results from a change in its relative expensiveness caused by a change in the good’s own price. (2) The reduction in the quantity demanded of the second of a pair of substitute resources that occurs when the price of the first resource falls and causes firms that employ both resources to switch to using more of the first resource (whose price has fallen) and less of the second resource (whose price has remained the same).