The Price Elasticity of Demand Coefficient for a Good Will

question 112

Multiple Choice

The price elasticity of demand coefficient for a good will be lower:

• A) if there are few substitutes for the good.
• B) if expenditure on it is a small part of one's budget.
• C) both a and b are true.
• D) neither a nor b are true.

---

Definitions:

Expectancy Disconfirmation Model

A consumer satisfaction framework that compares actual product or service performance against pre-consumption expectations.

Expectancy Confirmation Model

A psychological theory suggesting that people tend to seek, interpret, favor, and recall information that confirms their pre-existing beliefs and expectations.

Identity Negotiation

A social psychological process where individuals engage in establishing, maintaining, or revising their personal identity or social position within different contexts.

Middle-aged Man

An adult male who is in the middle stage of life, typically considered between the ages of approximately 45 and 65.