The Price Elasticity of Demand for Widgets Is 0

question 236

Multiple Choice

The price elasticity of demand for widgets is 0.8. Assuming no change in the demand curve for widgets, an increase in sales of 16 percent implies a(n)

• A)1 percent reduction in price.
• B)12 percent reduction in price.
• C)20 percent reduction in price.
• D)40 percent reduction in price.

---

Definitions:

Characteristics of Self-Actualizers

Traits and behaviors of individuals who have achieved self-actualization, including autonomy, creativity, and a deep appreciation of reality.

Self-Determination Theory

A psychological theory of human motivation focusing on the importance of autonomy, competence, and relatedness in fostering volitional actions.

Hierarchy of Needs

A theory proposed by Abraham Maslow outlining a five-tier model of human needs, from basic physiological needs to self-actualization, each level needing to be fulfilled before moving to the next.

Cognitive Needs

Mental requirements essential for the growth and development of an individual, such as knowledge, comprehension, and curiosity.