Price Elasticity of Demand Is ________ Divided by ________

question 22

Multiple Choice

Price elasticity of demand is ________ divided by ________.

• A) percent change in quantity demanded; percent change in price
• B) demand; price
• C) percent change in price; percent change in quantity demanded
• D) the going price; the asking price
• E) retail value; list price

---

Definitions:

Base-Rate Information

Pallid, factual, statistical information about an entire class of events.

Paired Distinctiveness

Illusory correlation in which items are seen as belonging together because they share some unusual feature.

Availability Heuristic

A cognitive short-cut in which the frequency or likelihood of an event is based on how quickly instances or associations come to mind.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method, or decision.