If Demand Is Price Elastic

question 43

Multiple Choice

If demand is price elastic

• A) a 1 percent decrease in the price leads to an increase in the quantity demanded that exceeds 1 percent.
• B) a 1 percent increase in the price leads to an increase in the quantity demanded that exceeds 1 percent.
• C) a 1 percent decrease in the price leads to a decrease in the quantity demanded that is less than 1 percent.
• D) the price is very sensitive to any shift of the supply curve.

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Definitions:

Ancient Greeks

The Ancient Greeks were people belonging to the Greek civilization during a period from the Dark Ages about 1200 BCE to the end of antiquity (c. 600 AD). This era was marked by significant developments in art, philosophy, science, and politics.

Behaviorism

A theory of learning based on the idea that all behaviors are acquired through conditioning, without considering thoughts or feelings.

Watson

John B. Watson is considered the father of behaviorism, a school of psychology focusing on observable behaviors rather than mental processes.

Gestalt

A theory of mind and brain that proposes that the operational principle of the brain is holistic, parallel, and analog, with self-organizing tendencies; often summarized by the phrase "the whole is different from the sum of its parts."