Who Is Likely to Pay the Most Attention to Social

question 140

Multiple Choice

Who is likely to pay the most attention to social information?

• A) Nabil, who is outgoing and has many friends
• B) Susanne, who is shy but has several close friends
• C) Akemi, who has few close friends but belongs to many social groups
• D) Jacob, who is shy and does not know very many people

---

Definitions:

Substitution Effect

The alteration in the consumption of goods as a result of changes in their relative prices, leading consumers to substitute more expensive items with cheaper alternatives.

Output Effect

The change in total revenue resulting from selling additional units due to a price decrease, in the context of price elasticity of demand.

Income Effect

A change in the quantity demanded of a product that results from the change in real income (purchasing power) caused by a change in the product’s price.

Wage Rate

The amount of compensation offered to an employee per unit of time (e.g., hourly, daily) or piece of work done.