Elastic Demand Exists When

question 202

Multiple Choice

Elastic demand exists when

• A)a small percentage decrease in price produces a smaller percentage increase in quantity demanded.
• B)a small percentage decrease in price produces a larger percentage increase in quantity demanded.
• C)an increase in price causes a larger increase in quantity demanded.
• D)the quantity demanded remains the same regardless of level of price.
• E)no change in in price produces a small percentage change in quantity demanded.

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Definitions:

Defensive Attribution

A cognitive bias in which individuals attribute causes for behaviors or events to external factors to protect their self-esteem.

Internal Causes

Factors within an individual, such as traits, beliefs, or desires, that explain or influence their behavior.

Stable Causes

Factors or conditions that consistently contribute to an outcome or effect with little variation over time.

Actor-Observer Bias

A cognitive bias involving the tendency to attribute one's own actions to external factors while attributing others' actions to their personality or disposition.