When Corey Runs Out of Shampoo He Buys Whatever Brand

question 350

Multiple Choice

When Corey runs out of shampoo he buys whatever brand is on sale at his local CVS drugstore. What is his level of involvement in the purchase decision for shampoo?

• A) Extensive.
• B) Limited.
• C) Moderate.
• D) Modest.
• E) Routine.

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Definitions:

Other-Things-Equal Assumption

The assumption that factors other than those being considered are held constant. Also known as the ceteris paribus assumption.

Supply

The total amount of a specific good or service that is available to consumers at current prices.

Excise Tax

A tax imposed on specific goods, services, or activities, such as tobacco, alcohol, and fuel, usually intended to discourage their use or generate revenue.

Demand and Supply

Economic model that determines the price of a good in a market, based on the desire and availability of the good.