To Examine How Responsive Consumers Are to Price Changes, Economists

question 271

Multiple Choice

To examine how responsive consumers are to price changes, economists measure:

• A) the elasticity of demand.
• B) mean household income.
• C) median household income.
• D) key economic indicators such as unemployment, inflation, and economic growth.

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Definitions:

Convergent Thinking

A cognitive process in which the focus is directed at arriving at a single, correct solution to a problem.

Optimality Theory

A conceptual framework in linguistics that hypothesizes that observable forms of language arise from the interaction between conflicting constraints.

Savant Syndrome

A condition where someone with significant mental disabilities exhibits extraordinary abilities in a specific area, such as memory, music, math, or art.

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions, characterized by open-ended, spontaneous, non-linear thinking.