Suppose Gas Prices Have Steadily Increased Over the Last Decade

question 84

Multiple Choice

Suppose gas prices have steadily increased over the last decade. We would expect the price elasticity of demand for gas, when measured over the last decade, to:

• A) be more elastic than it has been in the last six months.
• B) be less elastic than it has been in the last six months.
• C) be relatively the same as the last six months.
• D) no longer be an issue because consumers are used to higher gas prices.

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Definitions:

Classical Conditioning

A behavioral technique where two stimuli are systematically linked together; over time, a reaction originally elicited by the second stimulus is elicited by the first stimulus alone.

Reflex Response

An automatic, involuntary reaction to a specific stimulus, occurring without conscious thought as part of the body's defense mechanisms.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, emphasizing the strength of behavior as a result of its consequences.

Unconditioned Response

A spontaneous, innate response to a stimulus that happens without any previous learning or conditioning.