What Happens When Demand Is Elastic in the Current Price

question 5

Multiple Choice

What happens when demand is elastic in the current price range

• A)An increase in price would increase total revenue because the decrease in quantity demanded is less than the increase in price.
• B)An increase in price would decrease total revenue because the decrease in quantity demanded is greater than the increase in price.
• C)A decrease in price would decrease total revenue because the increase in quantity demanded is smaller than the decrease in price.
• D)A decrease in price would not affect the total revenue.

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Definitions:

Conditioning Trial

An instance in classical conditioning where the conditioned stimulus is presented with or just before the unconditioned stimulus, leading to learning.

Reward

An outcome or event that strengthens the likelihood of a behavior being repeated.

Food Pellets

Food pellets are often used as a positive reinforcement in animal studies, particularly in experiments involving operant conditioning.

Performance

The action or process of carrying out or accomplishing an action, task, or function.