If a 12 Percent Fall in Price Results in an 8

question 2

Multiple Choice

If a 12 percent fall in price results in an 8 percent increase in quantity demanded,the price elasticity of demand equals

• A)0.96.
• B)0.12.
• C)0.67.
• D)1.5.
• E)0.8.

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Definitions:

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and ignore situational factors in explaining others' behavior.

Overjustification Effect

A phenomenon where providing external incentives for an activity already intrinsically rewarding leads to a decrease in intrinsic motivation.

Contingent Reward

A reinforcement strategy where rewards are given based on the achievement of specific criteria or performance.

Self-Perception Errors

Mistakes made when individuals evaluate their own behavior and qualities, often leading to inaccuracies in self-assessment.