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If the Price Elasticity of Supply Is 0

question 220

True/False

If the price elasticity of supply is 0.5 and the quantity supplied decreases by 6%, then the price must have decreased by 3%.


Definitions:

Reactance Theory

A psychological theory suggesting that people have a negative reaction to restrictions on their personal freedoms, often resulting in a motivation to regain those freedoms.

Status Quo Bias

The preference to keep things the way they are rather than change.

Dispute

A disagreement, argument, or debate, often between people or groups with opposing viewpoints.

Participant

A person who takes part in something, such as an experiment or study.

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