If the Price Elasticity of Demand for a Good Is

question 123

Multiple Choice

If the price elasticity of demand for a good is 2, then a 10 per cent increase in the price of that good ________ the quantity demanded by ________ per cent.

• A) increases; 20
• B) decreases; 20
• C) increases; 8
• D) decreases; 10
• E) decreases; 2

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Definitions:

Pavlov

Refers to Ivan Pavlov, a Russian physiologist best known for his discovery of classical conditioning, where he demonstrated how reflexes could be conditioned or learned through association.

Behavior Therapy

A type of therapy that focuses on changing undesirable behaviors through reinforcement, punishment, and other learning principles.

Methodological Behaviorism

A branch of psychology that focuses on observable behaviors and their relationship to environmental stimuli, excluding inner thoughts and feelings from its study.

Conceptual Behaviorism

An approach within behavioral science that integrates behavioral principles with cognitive processes to understand and modify behavior.