The Price Elasticity of Demand Measures

question 79

Multiple Choice

The price elasticity of demand measures

• A) the consumers' sensitivity to a price change.
• B) the producers' sensitivity to a price change.
• C) how much the market price changes in response to a change in demand.
• D) how much the demand changes in response to a change in income.

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Definitions:

Dictator Game

A behavioral economic experiment where one participant, the "dictator," determines how to split an amount of money between themselves and another participant.

Behavioral Economists

Researchers who study the psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Feelings About Fairness

The emotions and perceptions regarding the fairness or equity of actions, decisions, or distributions among individuals or groups.

Ultimatum Game

A game in experimental economics where one player proposes how to divide a sum of money with another player, who can either accept or reject the proposal.