The Greater Is the Absolute Price Elasticity of Demand, the

question 279

Multiple Choice

The greater is the absolute price elasticity of demand, the

• A) larger is the responsiveness of quantity demanded to the price change.
• B) smaller is the responsiveness to a price change.
• C) larger is the income of the buyer.
• D) higher is the change in demand to an income change.

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Definitions:

Habituation

The method through which a living being reduces or stops its reactions to a constant stimulus over a period.

Behavioral Contrast

The change in the intensity or rate of a specific behavior when the reward conditions for another behavior are modified, demonstrating how reinforcement can influence behavioral patterns divergently.

Habituation

The process by which there is a decrease in response to a stimulus after repeated exposures, indicating a form of learning or adaptation.

Sensitization

An increased response to a stimulus following repeated exposures, typically leading to an exaggerated reaction over time.