Auto Dealers Slash Prices at the End of the Model

question 18

Multiple Choice

Auto dealers slash prices at the end of the model year in response to deficient demand/excess inventory but restaurants facing the same problem slash production because

• A) auto customers are less price sensitive than restaurant customers
• B) price elasticity of demand (in absolute values)is higher for auto than restaurant customers
• C) price elasticity of supply is lower in auto than in restaurants
• D) restaurant food spoils quickly and is much more perishable
• E) price elasticity of supply in autos is smaller than the absolute value of price elasticity of demand but the reverse is true for restaurants

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Definitions:

Stereotype

A widely held but oversimplified and generalized belief about a particular category of people or things.

Conflict Theory

A perspective that views social life as a competition, with social groups struggling over resources and power, leading to social change.

Valued Resources

Those assets or materials considered of high importance or worth by a society or individual, often critical for survival or well-being.

Social Interactions

encompass the ways in which individuals or groups relate, communicate, and act with one another within a society.