The So-Called Norm of Reciprocity Rule Makes Which of the Following

question 102

Multiple Choice

The so-called norm of reciprocity rule makes which of the following predictions?

• A) Buyers will void their offers when the seller makes a concession (for instance, by coming down from her original price).
• B) When sellers start out low, buyers are less likely to buy out of fear of deception.
• C) Buyers who "low ball" sellers by starting the bargaining out at a price far below asking price are most likely to prevail.
• D) If I sell my car to your sister at a good price, you are likely to return the favor some day in the future.

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Definitions:

Estimating Price Elasticity

The process of calculating how sensitive the quantity demanded of a good is to a change in its price.

Price Elasticity

A quantification of demand fluctuation for a product based on its price alteration.

Demand

The amount of a product or service that buyers are ready and able to buy at different price points over a specified duration.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to buy at a given price within a specified period.