Question

QUESTION 7 A really great brand like Coca Cola has a lot of flexibility with its pricing strategy because... O It is an inelastic good. O It is an elastic good. It is an inelastic good when prices increased and elastic when prices decrease. O It has unitary elasticity. QUESTION 8 The Theory of Reasoned Action only works because an attitude is... An enduring evaluation of something and multi-dimensional A changing evaluation of something and multi-dimensional An enduring evaluation of something AND one dimensional. O A changing evaluation of something and one dimensional.

Answer 1

7. ans A

Inelastic goods are defined in economy as those for which the quantity demanded or supplied is unaffected when the price of that good (or service) changes. Some traditional examples of these include gas, water, clothing,tobacco, food, and oil.

8. ans   

The Theory of Reasoned Action aims to explain the relationship between attitudes and behaviors within human action. It is mainly used to predict how individuals will behave based on their pre-existing attitudes and behavioral intentions. attitudes are one of the key determinants of behavioral intention and refer to the way people feel towards a particular behavior.^[8] These attitudes are influenced by two factors: the strength of behavioral beliefs regarding the outcomes of the performed behavior (i.e. whether or not the outcome is probable) and the evaluation of the potential outcomes (i.e. whether or not the outcome is positive).^[7] Attitudes regarding a certain behavior can either be positive, negative or neutral.^[9] The theory stipulates that there exists a direct correlation between attitudes and outcomes, such that if one believes that a certain behavior will lead to a desirable or favorable outcome, then one is more likely to have a positive attitude towards the behavior.