When a Given Percentage Change in the Price Leads to a Larger

question 138

Multiple Choice

When a given percentage change in the price leads to a larger percentage change in the quantity supplied, supply is said to be

• A)elastic.
• B)unit elastic.
• C)inelastic.
• D)infinitely elastic.
• E)perfectly inelastic.

Analyze how the distribution of income and the concept of fairness play a role in economic discussions.

Understand how opportunity costs vary among nations and the factors contributing to these differences.

Understand the principle of the law of comparative advantage.

Recognize the benefits of trade and specialization.

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Definitions:

Feelings Generated

The emotions or sensations produced in response to stimuli or experiences.

Cognitive Dissonance

A psychological state of having inconsistent thoughts, beliefs, or attitudes, especially relating to behavioral decisions and attitude changes.

Sense of Consistency

The drive or need for individuals to ensure their beliefs, attitudes, and behaviors are coherent and aligned to avoid cognitive dissonance.

Psychological Price

Pricing strategy that leverages consumer psychology, often using pricing just below a whole number (e.g., $1.99) to increase appeal.