Shawna Wins the Lottery and Her Income Increases by 60

question 98

Multiple Choice

Shawna wins the lottery and her income increases by 60%. She used to buy 10 pints of cottage cheese per month and now she buys 12 pints. Her income elasticity of demand for cottage cheese is , making it a(n) good.

• A) 3; luxury
• B) 3.59; normal
• C) 0.33; necessity
• D) 0.28; inferior
• E) -0.33; inferior

Grasp how corporate culture manifests through employee behavior, ethical expectations, and social responsibility.

Recognize the importance of transparency and the role of organizations like Transparency International in promoting ethical business practices.

Understand different personal moral philosophies, such as utilitarianism and moral idealism, and their impact on ethical decision-making.

Understand the concept of bribery, corruption, and their common forms within the business context.

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Definitions:

Price Searchers

Firms or individuals that have the flexibility to set their prices because they offer unique products or services and face little to no direct competition.

Entry Barriers

Impediments that make it difficult for new participants to enter a specific industry or business field.

Monopolistic Competition

A term often used by economists to describe markets characterized by a large number of sellers that supply differentiated products to a market with low barriers to entry. Essentially, it is an alternative term for a competitive price-searcher market.

Marginal Revenue

Extra profit generated from the sale of one more unit of a product or service.