Suppose That the Price of Unlimited Monthly Wireless Data Plans

question 84

Multiple Choice

Suppose that the price of unlimited monthly wireless data plans increases from $80 to $120, and as a result, the quantity demanded of this plan decreases by 10%. Using the midpoint method, the price elasticity of demand is

• A) 0.20.
• B) 0.25.
• C) 4.
• D) 5.

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Definitions:

Harshness

The quality of being extremely strict or severe in conditions or treatment.

Perceptual Biases

Cognitive biases that result from the simplification of processing social realities, often leading to distorted interpretations.

Central Tendency

The tendency to assign most ratees to middle-range job performance categories.

Halo Effect

A cognitive bias where the perception of one positive trait influences the perception of other traits.