An Effective Theory Must

question 71

Multiple Choice

An effective theory must:

• A)have been proven.
• B)must have been around for centuries or longer.
• C)be continuously tested.
• D)include mathematical formulae.

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Definitions:

Inelastic Demand

Refers to a situation where the quantity demanded of a good or service changes minimally in response to price changes.

Total Revenue

The total income received by a firm from selling its goods or services, calculated as the unit price multiplied by the quantity sold.

Law of Demand

A principle that states there is an inverse relationship between the price of a good and the quantity of it buyers are willing to purchase. As the price of a good increases, consumers will wish to purchase less of it. As the price decreases, consumers will wish to purchase more of it.

Tuna Sandwiches

A type of sandwich made primarily with tuna and other ingredients such as mayonnaise and celery.