"A Mental Construct That Represents Some Aspect of the World

question 37

Multiple Choice

"A mental construct that represents some aspect of the world in a somewhat simplified form" is the definition of a

• A)variable.
• B)theory.
• C)measurement.
• D)concept.

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Definitions:

Income Elasticity

A measure of how much the quantity demanded of a good changes in response to a change in consumers' income.

Demand Inelastic

When the quantity demanded of a good or service is relatively unchanged in response to price changes.

Directly Related

A situation where two variables move in the same direction, meaning if one increases, the other also increases and vice versa.

Price Inelastic

Describes a situation where the demand for a good is not significantly affected by changes in its price.