Refer to the Diagram

question 389

Multiple Choice

Refer to the diagram. If price falls from $10 to $2, total revenue

• A)rises from A + B to A + B + D + C, and demand is elastic.
• B)falls from A + D to B + C, and demand is inelastic.
• C)rises from C + D to B + A, and demand is elastic.
• D)falls from A + B to B + C, and demand is inelastic.

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Definitions:

Arbitrary

Based on random choice or personal whim, rather than any reason or system.

Stimulus

A signal or item in the environment that elicits a response from an organism.

Perceptual Features

Characteristics of objects in our environment that we can perceive through our senses, such as shape, color, texture, and size.

Varying Conditions

Different or changing states, circumstances, or situations.