You Are Driving Down the Freeway and as You Change

question 84

Multiple Choice

You are driving down the freeway and as you change lanes,the person behind you honks and shakes her fist.She then pulls up next to you and mouths words that cause you to wonder why she is talking about a "puck." The other driver exhibits which behavioral tendencies?

• A)Competitiveness
• B)Life imbalance
• C)Hostility/anger
• D)Impatience/urgency

---

Definitions:

Income Effect

How an alteration in the income of an individual or the economy influences the demand level for a particular product or service.

Substitution Effect

The shift in consumption tendencies brought on by changes in the relative value of goods, compelling consumers to opt for an alternative product.

Utility Function

A mathematical representation that ranks alternatives according to their utility for an individual, illustrating preferences over a set of goods and services.

Substitution Effect

The change in consumption that results from a change in the price of one good relative to the prices of other goods, holding utility constant.