If a Large Percentage Increase in the Price of a Good

question 141

Multiple Choice

If a large percentage increase in the price of a good results in a small percentage reduction in the quantity demanded of the good, demand is said to be

• A) of unitary elasticity.
• B) relatively inelastic.
• C) relatively elastic.
• D) perfectly elastic.

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Definitions:

Perceptual Adaptation

The ability of the brain to adjust to changes in the sensory environment, allowing for maintained perception under different conditions.

Perceptual Overload

A condition resulting from the exposure to more information or stimuli than one can effectively process at one time.

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant stimuli over time.

Absolute Threshold

The smallest level of stimulus that can be detected by a sense at least 50% of the time.