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

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Definitions:

Arousal

A physiological and psychological state of being awake or reactive to stimuli, often associated with physical excitation or emotional responses.

Extrinsic Locus

The belief that control over one's life events and outcomes resides primarily in external factors or forces beyond one's personal control.

Julian Rotter

A psychologist known for his work in social learning theory and the introduction of the concept of locus of control.

Ellen Langer

A psychologist known for her work on the illusion of control, mindfulness, and decision-making.