When Demand Is Unit Elastic, a 10 Percent Change in the Price

question 202

Multiple Choice

When demand is unit elastic, a 10 percent change in the price of the good

• A) will cause a change in quantity demanded of less than 10 percent.
• B) will cause a change in quantity demanded equal to 10 percent.
• C) will cause a change in quantity demanded greater than 10 percent.
• D) will not cause any change in quantity demanded.

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Definitions:

Encoding Specificity

The hypothesis that when information is stored in memory, it is not recorded in its original form but translated (“encoded”) into a form that includes the thoughts and understanding of the learner.

Levels of Processing

A theory suggesting that the depth (shallow to deep) of mental processing affects memory recall, with deeper levels of processing leading to more durable memory traces.

Flashbulb Memory

A highly detailed and vivid memory of a significant or shocking event, as if it has been captured by a camera's flash.

Retrieval Cues

Stimuli or pieces of information that help in the recovery of stored memories.