If the Price-Elasticity Coefficient for a Product Is 0

question 263

True/False

If the price-elasticity coefficient for a product is 0.68 and the seller wants to raise revenues by changing its price, then the seller should cut the price of the product.

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Definitions:

Extinction

In the study of psychology, this term describes the slow reduction and final elimination of a conditioned response due to the absence of pairing between the conditioned and unconditioned stimuli.

Stimulus Discrimination

The learned ability to differentiate between a conditioned stimulus and other stimuli that have not been paired with an unconditioned stimulus.

Classical Conditioning

A training method where two signals are consistently associated with each other; a reaction initially triggered by the second signal ultimately becomes triggered by just the first signal alone.

Stimulus Generalization

The process by which a conditioned response is triggered by stimuli that are similar but not identical to the original conditioned stimulus.