Price Elasticity of Demand

question 81

Multiple Choice

Price elasticity of demand:

• A) Is a price based on total cost with a desired mark-up
• B) Indicates the sensitivity of sales to changes in price
• C) Is a price based on variable cost with a desired mark-up
• D) Is a calculation that relates changes in costs to changes in volume of sales

---

Definitions:

Self-Fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true, due to positive feedback between belief and behavior.

Social Schema

Cognitive frameworks that help individuals quickly process and organize social information based on past experiences, aiding in understanding and predicting social situations.

Stereotyping

The act of categorizing individuals into groups and attributing generalized characteristics to them, often leading to oversimplified beliefs.

Highly Self-Monitor

Refers to individuals who are very conscious of their behavior and appearance in social contexts, adjusting them to fit the situation.