A Price Elasticity of Demand Equal to Zero Indicates That

question 23

Multiple Choice

A price elasticity of demand equal to zero indicates that the demand for a product is

• A) relatively inelastic.
• B) perfectly inelastic.
• C) unit elastic.
• D) infinitely elastic.
• E) relatively elastic.

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Definitions:

Overgeneralization

The cognitive bias of applying a rule or conclusion too broadly across situations that don't necessarily fit.

Generalization

refers to the process of formulating broad statements or conclusions that apply to multiple instances from specific observations or limited examples.

Illogical Reasoning

A form of reasoning where conclusions are drawn or arguments made that do not follow logically from the premises or evidence provided.

Qualitative

Pertaining to or concerning the quality or nature of something, often used in research to describe non-numerical data gathered through observation, interviews, and narratives.