Which of the Following Statements Is True

question 89

Multiple Choice

Which of the following statements is true?

• A) If the income elasticity of demand is less than zero, the good is an inferior good.
• B) Only if the demand curve is vertical will sellers raise the price by the full amount of a tax.
• C) Two goods are substitutes if the cross-elasticity of demand coefficient is positive.
• D) A price elasticity of supply coefficient equal to 1.5 means the product exhibits an elastic supply and a 10 percent increase in the price will increase the quantity supplied by 15 percent.
• E) All of these.

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Definitions:

Perceive

The cognitive process of interpreting and making sense of sensory information.

Environmental Invariances

Aspects of the environment that remain stable or unchanged despite transformations or changes in perspective or conditions.

Active Interpretation

The process in which individuals actively engage with and make sense of information, rather than passively receiving it.

Direct Perception

A theory that suggests individuals perceive the world directly without requiring cognitive processes to interpret sensory information.