The Price Elasticity of Demand Is 5

question 138

Multiple Choice

The price elasticity of demand is 5.0 if a 10 percent increase in the price results in a ________ decrease in the quantity demanded.

• A) 2 percent
• B) 5 percent
• C) 10 percent
• D) 50 percent

---

Definitions:

Primary Circular Reaction

The term Piaget used to describe the infant’s tendency to repeat pleasurable bodily actions for their own sake.

Sucks His Fingers

A natural reflex for infants, often for comfort or self-soothing.

Classical Conditioning

A learning process that pairs a neutral stimulus with a response-producing stimulus, eventually causing the neutral stimulus to elicit the response on its own.

Environments

The surroundings or conditions in which a person, plant, or animal lives or operates, encompassing both natural and human-constructed elements.