One Evening While Watching Hulu, Your Stomach Growls

question 60

Multiple Choice

One evening while watching Hulu, your stomach growls. You see an ad for Jimmy John's. You walk to the shop and buy a sandwich, which tastes great. In terms of behavioral learning, your hunger is a

• A) reinforcement.
• B) cue.
• C) response.
• D) prompt.
• E) drive.

Explain the relationship between price sensitivity and demand elasticity.

Calculate elasticity of demand using the price elasticity formula.

Determine the elasticity nature (elastic, inelastic, unit elastic) of goods from given scenarios.

Analyze how changes in price affect total revenue depending on the elasticity of demand.

---

Definitions:

Aggregate Output

The total value of all goods and services produced in an economy during a specific period, often used interchangeably with gross domestic product (GDP).

Stabilization Policy

A government strategy aimed at maintaining economic stability by adjusting spending levels and tax rates.

Fiscal Policies

Government actions involving taxation and spending to influence the economy.

Wave of Optimism

A period characterized by heightened confidence and positive expectations among consumers or investors.