If Quantity Demanded Does Not Change When the Price Changes

question 40

Multiple Choice

If quantity demanded does not change when the price changes, the demand:

• A) is elastic.
• B) is inelastic.
• C) has unit elasticity.
• D) is perfectly inelastic.

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Definitions:

Mental Shortcuts

Cognitive strategies or simplified processes used to make decisions or judgments quickly, also known as heuristics.

Heuristic Processing

A mental shortcut that allows individuals to make decisions and solve problems quickly and efficiently, based on automatic, intuitive judgments.

Life Stages Hypothesis

A theory suggesting that individuals' preferences, behaviors, and attitudes change as they pass through different stages of their life.

Susceptibility

Refers to the likelihood or predisposition of an individual to be affected or influenced by certain external factors or conditions.