A 4 Percent Reduction in the Price of a Product

question 64

Multiple Choice

A 4 percent reduction in the price of a product has zero effect on the dollar amount of consumer expenditure on the product. The price elasticity of demand is

• A)zero.
• B)greater than zero.
• C)greater than zero but less than 1.
• D)equal to 1.

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Definitions:

Authoritarian Communities

Societies or groups that are governed by leaders who exercise absolute control, often limiting personal freedoms.

Generalized Other

A concept in sociology referring to the general notion that a person has of the common expectations that others have about actions and thoughts within a particular society.

Agent of Socialization

Individuals, groups, or institutions that play significant roles in integrating individuals into larger society by teaching social norms, values, and practices.

Looking-glass Self

A concept in sociology that suggests a person's self-understanding is constructed, in part, by how they believe others perceive them.