Suppose That Jane Enjoys Diet Coke So Much That She

question 126

Multiple Choice

Suppose that Jane enjoys Diet Coke so much that she consumes one can every day.Although she enjoys gourmet cheese,she consumes it sporadically.If the price of Diet Coke rises,Jane decreases her consumption by only a very small amount.But if the price of gourmet cheese rises,Jane decreases her consumption by a lot.These examples illustrate the importance of

• A)the availability of close substitutes in determining the price elasticity of demand.
• B)a necessity versus a luxury in determining the price elasticity of demand.
• C)the definition of a market in determining the price elasticity of demand.
• D)the time horizon in determining the price elasticity of demand.

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Definitions:

Aversive Conditioning

This is a form of conditioning where an unpleasant or aversive stimulus is paired with a specific behavior to reduce the likelihood of that behavior occurring in the future.

Cognitive-behavioral Therapy

A form of psychotherapy that aims to improve mental health by changing negative patterns of thought and behavior.

Posttraumatic Stress Disorder

A psychological disorder caused by exposure to or witnessing a horrifying incident, marked by recurring flashbacks, distressing dreams, and intense anxiety.

Systematic Desensitization

Systematic desensitization is a behavioral therapy technique used to reduce anxiety through gradual exposure to feared stimuli, paired with relaxation exercises.