Demand for a Product Is Likely to Be More Price

question 169

Multiple Choice

Demand for a product is likely to be more price elastic if

• A)it is considered a necessity.
• B)it has many substitutes.
• C)it has few substitutes.
• D)its price is low relative to a product with which it must be used.
• E)none of the above is true.

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Definitions:

Unconditioned Response

An automatic, natural response to a stimulus that occurs without any need for prior learning or conditioning.

Conditioned Stimulus

In classical conditioning, a previously neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.

Preparedness

The state of being readily equipped to handle anticipated situations or emergencies.

Conditioning

A form of learning in which an individual's response to certain stimuli is modified by reinforcement or punishment.