Answer:
The correct answer is A
Explanation:
Habituation is the reduction in the response to a certain stimulus after the repeated or repetation in the presentations. In short, it is defined as the theory that allows the person or an individual to tune out an stimuli which is external in order to focus on other things which demand their attention.
In this case, the ads first appeared, so it attract the attention of Ted, but when there are multiple ads of the same, then the he is not paying so much attention because of the habituation.
Out of the following choices, low grade gasoline is a product that is considered a commodity. The lower grades of gasoline are more affordable for people to buy.
Answer: Statement B
Explanation: Blue ocean strategies can be defined as strategies used by the organisations for the purpose of creating new demand and increasing customer base by entering into a market space that is unexplored by the competitors.
Thus, statement B is incorrect as blue ocean strategies is not used on matured markets but on uncontested and unexplored markets.
Answer:
A) buyers of gasoline bear a higher burden of the $2 tax than buyers of paperback novels.
Explanation:
The flatter the demand curve, the more elastic. In this case, D2, the demand curve for gasoline is more steeper which means it is more inelastic. Also, S2, the supply curve for gasoline is extremely elastic since it is almost horizontal.
When a tax is imposed on a good, the largest burden will fall on the side (suppliers or consumers) whose demand or supply curve is more inelastic. When a curve is inelastic, it means that a 1% price change will affect the quantity demanded in a smaller proportion.