A relationship that depends on the basic behaviour of consumers and firms and remains unchanged over long periods is called a ________ relationship.

Question

Quizplus · Accepted Answer

A structural relationship is characterized by long-lasting and persistent patterns of behaviour between consumers and firms, which are not expected to change in the short term. This type of relationship is based on the underlying structural features of the market, such as consumer preferences, production technologies, and entry barriers, and is therefore relatively stable over time. The other options (frictional, cyclical, dynamic, and transitory) refer to relationships that are either short-lived, subject to fluctuations, or based on changing trends and conditions.

A Relationship That Depends on the Basic Behaviour of Consumers