The Last Time the U

question 10

Multiple Choice

The last time the U.S.Post Office raised its prices for mail service critics of the rate increase argued that the Post Office's revenues would actually decline as a result of the price increase.It can be concluded that:

• A)both groups believe demand is elastic, but for different reasons.
• B)both groups believe demand is inelastic, but for different reasons.
• C)the Post Office believes demand for mail service is elastic; opponents of the price increase believe demand is inelastic.
• D)the Post Office believes demand for mail service is inelastic; opponents of the price increase believe demand is elastic.

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Definitions:

Sign Stimulus

A distinctive environmental event that can activate the innate releasing mechanism (IRM) and release a fixed action pattern.

Fixed Action Pattern

A sequence of innate, unchangeable behaviors that is triggered by a specific stimulus and will be carried out to completion once started.

Action Specific Energy

A concept in ethology suggesting that certain behaviors build up energy within an organism, which then seeks release through specific actions.

Instinctive Behaviors

Innate, fixed patterns of response to stimuli that are not learned and are common to all members of a species.