The Absolute Value of the Coefficient of the Price Elasticity

question 78

Multiple Choice

The absolute value of the coefficient of the price elasticity of demand is more likely to be greater than 1 if

• A) consumers have a long time to adjust to a price change.
• B) the product is a necessity.
• C) demand is inelastic.
• D) there are few close substitutes for the product.
• E) total revenue declines in response to a price reduction.

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Definitions:

Secondary Traits

Personality characteristics that are less consistent and more situational, as opposed to primary traits which are more enduring and consistent.

Changeable Aspects

Features or elements of a situation, system, or object that can be altered or modified.

Psychodynamic Theorists

Scholars and clinicians who focus on the influence of the unconscious mind on behavior.

Unconscious Dynamics

The processes and interactions within the unconscious mind that influence thoughts, feelings, and behaviors, often explored in psychoanalytic theory.