Suppose the Price of a Bus Ticket Rises from $2

question 105

Multiple Choice

Suppose the price of a bus ticket rises from $2.75 to $3.75 and the number of tickets sold falls from 10 000 to 8500,the price elasticity of demand is: :

• A)0.527.
• B)1.
• C)-0.527.
• D)-1.

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Definitions:

Actor/observer Bias

A cognitive bias that explains differences in how people attribute causes to their own versus others' behavior; typically attributing one's own actions to situational factors and others' actions to personal characteristics.

Internal Attributions

Explanations for people's behaviors based on their internal characteristics, such as personality traits, motives, or attitudes, as opposed to the influence of external circumstances.

External Attributions

The process of assigning the cause of a behavior or event to factors outside the individual, such as situational or environmental influences.

Causal Explanation

An assertion or theory that attempts to explain the cause of a particular event or phenomenon, establishing one factor as leading to the effect of another.