A café owner is wondering how much she can raise the price of a coffee before a majority of patrons will become aware of the increase. She is interested in their:
A) differentiation.
B) elasticity of demand.
C) adaptation.
D) differential threshold.

Question

Quizplus · Accepted Answer

The differential threshold refers to the minimum difference in stimulus that can be detected by an observer, and in this case, it refers to the minimum increase in price that patrons will become aware of. Therefore, the cafe owner is interested in their differential threshold. Choices A, B, and C do not accurately describe the café owner's interest in this scenario.

A Café Owner Is Wondering How Much She Can Raise