Price Elasticity of Demand Measures

question 14

Multiple Choice

Price elasticity of demand measures:

• A)the shift in demand as price changes.
• B)the sensitivity of quantity demanded to price.
• C)the slope of the demand curve.
• D)the relationship of percentages to price.

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Definitions:

Dispositionally

Pertaining to or resulting from one's inherent qualities of mind and character.

Self-serving Bias

A common cognitive bias where individuals attribute positive outcomes to their own actions but blame external factors for negative outcomes.

Dispositional Explanation

An attribution that ascribes behavior to innate qualities of the individual, such as personality traits or temperaments, rather than to external circumstances.

Situational Explanation

The interpretation of behavior or events based on the context or circumstances in which they occur, rather than attributing them to personal traits.