The Demand for a Good Is Elastic If

question 264

Multiple Choice

The demand for a good is elastic if

• A) an increase in its price results in an increase in total revenue.
• B) a decrease in its price results in a decrease in total revenue.
• C) an increase in its price results in a decrease in total revenue.
• D) the good is a necessity.

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Definitions:

Perceptual Adaptation

Perceptual adaptation is the ability of the body or brain to adjust to an altered perceptual environment, allowing for maintained performance despite changes.

Size Constancy

The perceptual phenomenon where the perceived size of an object remains constant despite changes in the distance or size of the image on the retina.

Restored Vision

The return of sight or improvement in vision that may occur naturally or through medical intervention after a period of impairment or loss.

Perceptual Set

A predisposition to perceive things in a certain way, based on expectations, experiences, and context.