Suppose the Manager of a Store Wants to Know Whether

question 72

Multiple Choice

Suppose the manager of a store wants to know whether the product of the store across the street is a substitute for her product.In other words,she would need to know if the cross-price elasticity of demand for the products _____.

• A)is positive
• B)is negative
• C)is unity
• D)is zero
• E)is infinite

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Definitions:

Just-Noticeable Difference

The smallest change in stimulus intensity that can be detected, underlining the threshold at which a change is perceptible.

Detectably Different

The threshold at which a change in a variable or condition is perceptible or measurable from its previous state.

Fechner's Law

A principle describing the logarithmic relationship between stimulus magnitude and the resultant sensory experience's intensity.

Specificity Theory

The proposal that different sensory qualities are signaled by different quality-specific neurons. This theory is correct in only a few cases (e.g., pain).