If the Elasticity of Demand Is Less Than One, the Price

question 15

Multiple Choice

If the elasticity of demand is less than one, the price elasticity of demand is

• A)Elastic
• B)Inelastic
• C)Unit elastic
• D)Unitary elastic

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Definitions:

Just Noticeable Difference

The minimal change in a stimulus that can just barely be detected by an organism, also known as the threshold of sensation.

Absolute Threshold

The minimum intensity of a stimulus that one can detect 50% of the time, a basic concept in sensory psychology.

Inattentional Blindness

The phenomenon in which we shift our focus from one object to another and, in the process, fail to notice changes in objects to which we are not directly paying attention.

Motion Parallax

A depth cue involving the apparent relative motion of stationary objects as observed by an observer moving across the landscape.