Figure 7-12 -Refer to Figure 7-12. When Price Falls from $50 to from $50

question 159

Multiple Choice

Figure 7-12
-Refer to Figure 7-12. When price falls from $50 to $40, it can be inferred that demand between those two prices is

• A) inelastic, since total revenue decreases from $8,000 to $5,000.
• B) inelastic, since total revenue increases from $5,000 to $8,000.
• C) elastic, since total revenue increases from $5,000 to $8,000.
• D) unit elastic, since total revenue increases from $5,000 to $8,000.

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Definitions:

Observational Learning

The process of acquiring new behaviors, skills, or attitudes by watching and imitating the actions of others.

Conditioned Response

A response developed from conditioning, where a formerly neutral stimulus is now associated with an unconditioned stimulus, eliciting a learned reaction.

Rescorla

A significant figure in psychology, known for his work with Robert A. Wagner on the Rescorla-Wagner model of classical conditioning, focusing on how stimuli are associated.

Unconditioned Response

A natural, automatic reaction to a stimulus that occurs without prior learning or conditioning.