Chris Runs a Sporting Goods Store and Knows That the Price

question 152

Multiple Choice

Chris runs a sporting goods store and knows that the price elasticity of demand for his sports clothing line is -1.5.He is planning to lower prices by 10%.The percentage change in quantity demanded will be:

• A) 15%.
• B) 0.15%.
• C) 6.66%.
• D) 0.06%.
• E) 8.50%.

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Definitions:

Contextual Factors

External conditions or environments that influence the outcomes of a process or situation, often beyond the control of individuals.

Empathy

The ability to understand and share the feelings of another person from their perspective.

Just-World Hypothesis

According to Lerner and Miller, people need to believe that the world is a just place where they get what they deserve. As evidence of undeserved suffering undermines this belief, people may conclude that victims deserve their fate.

Normative Influence

An influence to conform to the positive expectation of others, to gain social approval or to avoid social disapproval.