If the Price Elasticity of Demand for Peaches Is 1

question 47

Multiple Choice

If the price elasticity of demand for peaches is 1.76 and the price elasticity of demand for apples is 1.59, then consumers are

• A)more sensitive to a change in the price of apples than they are to a change in the price of peaches.
• B)more sensitive to a change in the price of peaches than they are to a change in the price of apples.
• C)more likely to substitute strawberries for peaches than for apples.
• D)more likely to substitute strawberries for apples than for peaches.
• E)eating more peaches than apples.

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Definitions:

Misleading Information

Incorrect or deceptive data presented, often with the intention of influencing beliefs or behaviors falsely.

Short-term Memory

The skill to retain a slight quantity of information in an instantly available status for a short span of time.

Elaborative Rehearsal

Elaborative Rehearsal is a method of memory consolidation in which information is related to existing knowledge or deeply analyzed to facilitate long-term storage.

Long-term Memory

A type of storage in the brain capable of holding information for long periods, sometimes indefinitely.