At a Ski Resort Located Over One Hour from the Nearest

question 103

Multiple Choice

At a ski resort located over one hour from the nearest large town, there is only one grocery store and it charges prices more than 200% percent above the typical retail prices. In the long run, we would expect that:

• A) another store will open that will charge equally high prices since competition is low.
• B) the store will continue to earn high profits even in the long run since the size of the market is small.
• C) demand will decrease since people will not want to pay the high prices.
• D) another store will open that will charge lower prices.

---

Definitions:

Social Categorization

The cognitive process of classifying people into groups based on shared characteristics.

Own Groups

The social groups to which an individual feels they belong, often leading to favoritism toward group members and bias against outsiders.

Social Learning

A theory positing that people learn from one another, via observation, imitation, and modeling.

Attitude Formation

The process by which individuals develop and change their evaluation of objects, people, or events, based on factors like personal experience, social influence, and genetic predispositions.