When the Demand for a Good Is Perfectly Elastic

question 8

Multiple Choice

When the demand for a good is perfectly elastic

• A) total revenue is as large as possible.
• B) the demand curve for the good is vertical.
• C) the price elasticity of demand is infinite.
• D) the price elasticity of demand is zero.

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Definitions:

Unconscious Influence

The impact on behavior and decision-making by factors not consciously perceived by the individual.

Mental Representations

Mental representations are cognitive constructs that enable individuals to process and store information about the world, including images, words, and concepts, facilitating thought and understanding.

Exposure Treatments

Psychological treatments that involve the systematic exposure of a patient to a feared object or context without any danger, in order to overcome their anxiety.

Specific Anxieties

Fears or phobias that are focused on particular situations, objects, or activities.