If the Price Elasticity of Demand for Orange Juice Is

question 107

Multiple Choice

If the price elasticity of demand for orange juice is 0.8, then a reduction in the price of orange juice will cause buyers to buy

• A) fewer bottles of orange juice, and their total spending on orange juice will decrease.
• B) fewer bottles of orange juice, but their total spending on orange juice will increase.
• C) more bottles of orange juice, and their total spending on orange juice will increase.
• D) more bottles of orange juice, but their total spending on orange juice will decrease.

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Definitions:

Broad Preferences

General or overarching choices or inclinations that an individual or group may have.

Geert Hofstede

A Dutch social psychologist who is known for his research on cross-cultural groups and organizations, particularly for developing cultural dimensions theory.

National Culture

The set of shared values, beliefs, customs, and practices that characterize the people of a particular country or nation.

Impatience

A tendency to be quickly irritated or provoked by delays or obstacles.