If the Price Elasticity of Demand Equals 1

question 476

Multiple Choice

If the price elasticity of demand equals 1.0, then as the price falls, the

• A) quantity demanded decreases.
• B) total revenue falls.
• C) quantity demanded does not change.
• D) total revenue does not change.

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Definitions:

Reactive

The tendency to respond to stimuli or situations in a manner dictated by the stimuli themselves rather than initiating proactive actions.

Temperamental Differences

Variations among individuals in their emotional and behavioral responses due to differing inborn temperaments.

Authoritative Parents

Parenting style characterized by high expectations, understanding, and support, balancing strict rules with emotional warmth and autonomy for the child.

Permissive Parents

A parenting style characterized by the high responsiveness and low demands, where parents are lenient and avoid imposing rules.