If Consumers Are Not Price Sensitive in Purchasing a Consumer

question 67

Multiple Choice

If consumers are not price sensitive in purchasing a consumer product such as Smucker's Jams, a 10% increase in the retail price of strawberry jam because of a 10% increase in the cost of strawberries from farmers will not affect quantities demanded for jam. Thus, the derived demand indicates that the demand for strawberries is:

• A)elastic
• B)inelastic
• C)unpredictable
• D)unknown
• E)none of the answer choices.

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Definitions:

Amygdala

A region of the brain within the temporal lobe, involved in the processing of emotions such as fear, anger, and pleasure.

EEG

Short for electroencephalography, a non-invasive method used to record the electrical activity of the brain.

MEG

MEG, or magnetoencephalography, is a non-invasive imaging technique that measures the magnetic fields produced by neuronal activity in the brain, used to study brain function.

PET

Positron Emission Tomography, a brain-imaging technique that uses radioactive tracers to visualize brain activity.