The Demand for a Good Is Perfectly Elastic When the Price

question 75

Multiple Choice

The demand for a good is perfectly elastic when the price elasticity of demand is

• A)equal to infinity.
• B)between infinity and 1.
• C)equal to 1.
• D)between 1 and zero.
• E)equal to zero.

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Definitions:

Actor-observer Bias

The tendency to attribute one's own actions to external causes while attributing others' actions to internal characteristics.

Self-serving Bias

The common human tendency to attribute positive events to one's own character but attribute negative events to external factors.

Environmental Cause

A factor in the surrounding environment that contributes to the development or outcome of a condition or event.

Dispositional Attributions

Explanations for behavior that ascribe actions to inherent personality traits rather than external situations or circumstances.