Internet Comparison Shopping Sites Like Shopping

question 118

Multiple Choice

Internet comparison shopping sites like Shopping.com and Pricegrabber.com allow consumers to compare prices of substitute products much more easily than is possible without the Internet.These sites have

• A) reduced the price elasticity demand for individual products.
• B) increased the cross-price elasticity for substitute products.
• C) increased the income effect on price elasticity of demand.
• D) reduced the cross-price elasticity of demand for complementary goods.
• E) decreased the price elasticity of demand for groups of similar products.

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Definitions:

Displacement

In physics, the movement of an object from one position to another or the volume displaced by an object in a fluid.

Business Conditions

Describes the state of the economy and market environment in which a business operates, affecting its performance and strategy.

Defense Mechanism

Psychological strategies unconsciously used to protect a person from anxiety arising from unacceptable thoughts or feelings.

Regression

A statistical method used to model and analyze the relationship between a dependent variable and one or more independent variables.