The Fact That Millions of Consumers Are Using Online Search

question 145

Multiple Choice

The fact that millions of consumers are using online search engines for comparison shopping has:

• A) reduced demand.
• B) increased price elasticity of demand.
• C) reduced the income effect.
• D) reduced price elasticity of demand.
• E) increased the income effect.

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Definitions:

Downward-sloping

A term used to describe a graphical representation where a line or curve moves lower as it travels from left to right, indicating a negative relationship between two variables.

Efficiency Wage Model

An economic theory suggesting that higher wages might lead to increased productivity by attracting better employees and increasing worker motivation.

Electronic Devices

Gadgets like smartphones, laptops, and tablets that operate on electrical power and digital information.

Supply of Labor

The total hours that workers in the economy are willing and able to work at a given wage rate.