If the Elasticity of Demand for Peaches Is 1

question 162

Multiple Choice

If the elasticity of demand for peaches is 1.76 and the elasticity of demand for apples is 1.59, then consumers are

• A) more sensitive to a change in the price of peaches than they are to a change in the price of apples.
• B) less sensitive to a change in the price of peaches than they are to a change in the price of apples.
• C) more sensitive to a change in the quantity of peaches than they are to a change in the quantity of apples.
• D) less sensitive to a change in the quantity of peaches than they are to a change in the quantity of apples.

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Definitions:

Cued Matching

A memory recall strategy that involves matching information to specific cues or contexts to aid retrieval.

Cued Recall

A process in memory recall in which a person successfully remembers an item with the help of cues or hints.

Savings

Money that has been set aside for future use, typically stored in a financial institution or invested, allowing for growth over time.

Recognition

The cognitive process of identifying a previously encountered or learned item, event, or experience from among a list of options.