Which of the Following Statements Is True of the Price

question 149

Multiple Choice

Which of the following statements is true of the price elasticity of demand?

• A) As the number of substitutes for a good increases, the price elasticity of demand for that good decreases.
• B) If a consumer's budget share of a good increases, the price elasticity of demand for that good is likely to decrease.
• C) The price elasticity of demand for a good is generally higher in the long run than in the short run.
• D) If the price elasticity of demand for a good equals zero, the demand for the good is likely to be highly responsive to price changes.

---

Definitions:

Receptor Sites

Specific locations on the surface of a cell or within a cell where molecules, such as hormones or neurotransmitters, can bind to initiate a cellular response.

Neurotransmitter Molecules

Chemical substances that transmit signals across a chemical synapse from one neuron (nerve cell) to another 'target' neuron, muscle cell, or gland cell.

Dendrites

The branched projections of a neuron that act to conduct the electrochemical stimulation received from other neural cells to the body, or soma, of the neuron.

Neural Impulse

The electrical signal that travels along a neuron, facilitating communication between the brain and other parts of the body.