Suppose the Price of a Good Rises from $10 to $20

question 51

Multiple Choice

Suppose the price of a good rises from $10 to $20 and quantity demanded falls from 500 to 400. If you calculate the elasticity of demand WITHOUT using the midpoint method, the answer would be _____. If you calculate the elasticity of demand WITH the midpoint method, the answer would be _____. Economists say _____ when calculating elasticity.

• A) -1/2; -1/3; use the midpoint method
• B) -1/3; -1/5; do not use the midpoint method
• C) -1/4; -1/4; it doesn't matter which method you use
• D) -1/5; -1/3; use the midpoint method

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Definitions:

Primary Circular Reactions

A developmental phase in infants from about one to four months, characterized by repeated actions that serve to build the infant's own body schema through reflexive interactions.

Acquired Adaptations

Characteristics or changes gained after birth due to environmental influences, improving an organism's ability to survive.

Mental Representations

Internal images, ideas, or concepts that stand in for objects, events, or relationships in the external world, aiding in cognitive functions like memory and reasoning.

Tertiary Circular Reactions

The stage in Piaget's theory of cognitive development where infants aged 12-18 months start to experiment with new actions and observe the consequences.