Suppose That Juan Carlos Is Filling Out a Survey That

question 298

Multiple Choice

Suppose that Juan Carlos is filling out a survey that he received in the mail.The survey asks him what he would do if the price of his favorite toothpaste increased.Juan Carlos reports that he would switch to a different brand.The survey asks what he would do if the price of all toothpastes increased.Juan Carlos reports that he must use toothpaste,so he would have to adjust his spending elsewhere.These examples illustrate the importance of

• A)changes in total revenue in determining the price elasticity of demand.
• B)a necessity versus a luxury in determining the price elasticity of demand.
• C)the definition of a market in determining the price elasticity of demand.
• D)the time horizon in determining the price elasticity of demand.

---

Definitions:

Ethical Lapses

Occurrences where individuals or organizations fail to act in a morally upright manner, breaking established moral or ethical codes.

Sarbanes-Oxley Act

A U.S. federal law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.

Corporate Responsibility

A business concept where companies integrate social and environmental concerns in their operations and interactions with stakeholders, beyond minimum legal requirements.

Taxes

Compulsory financial charges or levies imposed by a government on individuals, corporations, transactions, or property to fund public expenditures.