If Research Finds Demand Elasticities of 0

question 349

Multiple Choice

If research finds demand elasticities of 0.05 and 0.6 for the same good or service, then

• A) both are definitely short-run demand elasticities.
• B) both are definitely long-run demand elasticities.
• C) 0.05 is the short-run demand elasticity and 0.6 is the long-run demand elasticity.
• D) 0.6 is the short-run demand elasticity and 0.05 is the long-run demand elasticity.

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Definitions:

Behavioral Model

A framework for understanding and predicting how individuals act based on learned behaviors and responses.

Abnormal Behavior

Behaviors or activities that significantly differ from what is deemed typical or normal in a given culture or society.

Learning

The process of acquiring new, or modifying existing, knowledge, behaviors, skills, values, or preferences.

Psychoanalytic Approach

A psychological theory or method which emphasizes unconscious processes and childhood experiences in explaining the human mind and behaviors.