The Response in Quantity Demanded to a Price Increase in Subway

question 30

Multiple Choice

The response in quantity demanded to a price increase in subway rides:

• A) will be more elastic in six weeks than in six months.
• B) will be less elastic in six weeks than in six months.
• C) will be the same over that time period.
• D) is unpredictable without more information.

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Definitions:

Locus of Control

A psychological concept referring to the degree to which individuals believe they have control over the events in their lives.

Perceived Risk

The level of risk that a consumer associates with purchasing a particular product or service, which can influence their buying decision.

Conversion Rate

Percentage of consumers who buy a product after viewing it.

Compensatory Decision Rule

A decision-making process in which negative attributes can be compensated by positive ones, allowing for a balanced evaluation of multiple options.