When Two Variables in a Graph Are Related to a Third,changing

question 239

Multiple Choice

When two variables in a graph are related to a third,changing the third causes

• A) a movement along the curve.
• B) a shift of the curve.
• C) no change in the curve because the third variable isn't on the axes.
• D) either a shift or a movement in the curve but more information is needed to determine which occurs.
• E) None of the above answers is correct.

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Definitions:

Indirect Price Discrimination

A pricing strategy where different prices are charged for the same product or service based on characteristics other than the customer's willingness to pay.

Direct Price Discrimination

The practice of charging different prices to different consumers for the same product or service, based directly on the willingness to pay of each customer.

Cannibalizing

In business, the reduction in sales of a product due to the introduction of a similar product by the same company.

Elastic Demand

A situation where the demand for a product or service significantly changes in response to a change in price, indicating consumers' sensitivity to price changes.