Price Elasticity of Demand Is Determined by a Number of Factors

question 280

Multiple Choice

Price elasticity of demand is determined by a number of factors such as whether the item is a luxury product or service,the availability of substitutes,the necessity of the product or service,and

• A) the stage of the product or service in its product life cycle.
• B) the degree of carrying costs for the manufacturer or distributor.
• C) the financial resources of the organization itself.
• D) the cash outlay of purchase relative to a person's disposable income.
• E) the ability of the organization to meet sudden increases in demand.

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Definitions:

Aversive Conditioning

A learning process in which an individual's behavior is modified by pairing an unwanted stimulus with a specific response to create an aversion to that behavior.

Behavior Modification

The use of learning techniques, such as reinforcement or punishment, to change or mold behavior towards a desired outcome.

Positive Reinforcers

Stimuli that, when introduced after a behavior, increase the likelihood of that behavior being repeated.

Counterconditioning

A behavior therapy technique that involves replacing an unwanted response to a stimulus with a wanted response.