If a Large Percentage Fall in the Price of Good

question 130

Multiple Choice

If a large percentage fall in the price of good A results in a small percentage decrease in the quantity supplied,then

• A)demand is elastic.
• B)demand is inelastic.
• C)demand is income inelastic.
• D)supply is inelastic.
• E)supply is elastic.

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Definitions:

Above-Average Effect

The tendency for individuals to overestimate their abilities or qualities, particularly in comparison to others, also known as the superiority bias.

Self-Verification

The desire and tendency of individuals to seek confirmation of their self-concept from the social environment.

Terror Management Theory

A psychological concept suggesting that humans have anxiety over their mortality, influencing their beliefs and behaviors to manage this fear.

Fear of Death

A pervasive anxiety or dread related to the contemplation or anticipation of dying or the unknown aspects of death.