If Demand Is Price Inelastic and the Price Is Lowered,which

question 198

Multiple Choice

If demand is price inelastic and the price is lowered,which of the following occurs?

• A) The quantity sold decreases.
• B) The total expenditure increases and the total revenue decreases.
• C) The total revenue of the firms selling the product is unchanged.
• D) The total revenue of the firms selling the product decreases.
• E) The total expenditure decreases and the total revenue increases.

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Definitions:

Shaping

A method of training or teaching by which successive approximations toward a desired behavior are reinforced.

Reinforcer

Any stimulus that increases the likelihood that a preceding behavior will occur again.

Discriminative Stimuli

Stimuli that signal the availability of reinforcement or punishment, influencing the likelihood of a specific behavior occurring.

Discriminative Stimulus

A type of stimulus that signals the availability of reinforcement or punishment, guiding the organism's behavior towards or away from specific responses.