Perfectly Elastic Demand Occurs When

question 146

Multiple Choice

Perfectly elastic demand occurs when:

• A) consumers are extremely sensitive to a change in price.
• B) the quantity demanded is unchanged when price changes by any amount.
• C) consumers are slow to alter their demand when the price changes.
• D) only large changes in price affect the quantity demanded.

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Definitions:

Cognitive Theory

A framework that emphasizes the role of mental processes in understanding human behavior, emotions, and thought.

Physiological Processes

Biological functions or activities involved in the normal workings of living organisms, such as metabolism, digestion, and blood circulation.

Schachter And Singer

Two psychologists who proposed the two-factor theory of emotion, which contends that physical arousal and cognitive labeling based on environmental context jointly create the experience of emotion.

Bodily Changes

Physical and physiological transformations that occur in the body due to various factors like aging, exercise, or health conditions.