Given the Demand Function in Log-Linear Form: Q = 120

question 36

Multiple Choice

Given the demand function in log-linear form: Q = 120 - 1.5P + 12ADV where Q = quantity,P = price,and ADV = advertising expenditures,what is the price elasticity?

• A)1.5, inelastic
• B)-1.5, elastic
• C)120, elastic
• D)12, elastic

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Definitions:

Conditioned Stimulus

An initially neutral stimulus that, after association with an unconditioned stimulus, triggers a conditioned response.

Unconditioned Response

An automatic, innate reaction to a stimulus without prior learning or conditioning.

Positive Reinforcers

In behavioral psychology, stimuli that, when presented following a behavior, increase the likelihood of that behavior being repeated.

Negative Reinforcers

In behavioral psychology, an unpleasant stimulus whose removal leads to an increase in the likelihood that a preceding behavior will be repeated in the future.