If a 10 Percent Increase in Price Causes a 5

question 166

Multiple Choice

If a 10 percent increase in price causes a 5 percent increase in quantity supplied, then supply is

• A) elastic.
• B) inelastic.
• C) unit elastic.
• D) infinite.

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Definitions:

Automatic Processing

The unconscious encoding of incidental information such as space, time, and frequency, and of well-learned information.

Memory

The faculty by which the mind stores and remembers information.

Sensory Encoding

The process by which sensory information is translated into a form that can be utilized by the brain's neural system.

Semantic Network Model

A cognitive model proposing that mental concepts are organized within the brain in networks of interconnected ideas.