Natalie Operates on a Pretty Tight Budget

question 82

Multiple Choice

Natalie operates on a pretty tight budget.She is a price-conscious shopper and usually buys store or generic brands to save money.Recently,however,Natalie was given a pretty substantial raise.As such,she has altered her shopping patterns and now regularly buys more expensive,name-brand goods.This is an example of

• A) the substitution effect.
• B) the price inelasticity coefficient.
• C) the income effect.
• D) the target return effect.
• E) cross-price elasticity.

---

Definitions:

Disadvantage

A disadvantage is a condition or situation that puts someone or something at a less favorable position compared to others.

High Self-monitors

Individuals who are highly aware of their own behavior and the social context, adjusting their actions and presentation to suit different situations.

Low Self-monitors

refers to individuals who consistently exhibit their true thoughts, feelings, and behaviors regardless of the social context, displaying less adaptation to social cues.

External Locus

Refers to a belief that outcomes in one's life are due to external forces and circumstances beyond individual control.