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:

Organizational Behavior

The study of how individuals and groups act within the contexts of organizations, and how these behaviors affect the performance of the organization.

Strategic OB Approach

The idea that people are the key to productivity, competitive edge, and financial success.

Organizational Behavior

The study of how people interact within groups, often applied to workplace environments to improve organizational performance and employee satisfaction.

Positive Organizational Behavior

The exploration and usage of positive aspects of human resources and psychological abilities that are quantifiable, can be enhanced, and efficiently controlled to boost performance in the work environment.