The Concept of Income Elasticity of Demand Is Also an Explanation

question 8

True/False

The concept of income elasticity of demand is also an explanation of how nations behave when the cost of luxury imports increase in price.

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Definitions:

Modeling

A behavioral technique in psychology that involves learning through the observation and replication of others' behaviors.

Punishment Learning

A behavior modification strategy in which the likelihood of a behavior recurring is decreased by following it with an unpleasant outcome.

Stimulus Generalization

The tendency for the conditioned stimulus to evoke similar responses after the response has been conditioned.

Response Generalization

The expansion of a subject's response to stimuli that are similar but not identical to the original stimulus.