The Elasticity of Demand

question 152

Multiple Choice

The elasticity of demand:

• A) equals the inverse of price to quantity demanded.
• B) measures how far the demand curve shifts from a change in price.
• C) tells us how responsive consumer purchases are to price changes.
• D) estimates the relationship between quantity demand and production costs.

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Definitions:

Little Albert

An experiment conducted by John B. Watson and Rosalie Rayner which demonstrated classical conditioning in humans, specifically showing how fear can be conditioned.

John B. Watson

An American psychologist who established the psychological school of behaviorism.

Rosalie Rayner

An American psychologist best known for her work with John B. Watson on the Little Albert experiment, contributing to the development of behaviorism.

Generalization

When a conditioned response is elicited in response to things similar to the conditioned stimulus.