If the Absolute Price Elasticity of Demand for a Product

question 407

Multiple Choice

If the absolute price elasticity of demand for a product is less than 1, then

• A) consumers are relatively insensitive to price changes.
• B) consumers are relatively sensitive to price changes.
• C) there is a positive relationship between price changes and total revenue.
• D) producers are relatively insensitive to price changes.

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Definitions:

Temporal Immediacy

The degree to which future benefits or consequences are perceived as being imminent or occurring in the near term.

Social Proximity

Refers to the closeness or distance between individuals in social relationships or networks.

Ethical Intensity

The degree of importance given to an ethical issue, determined by its outcomes, probability of effect, concentration of effect, and social consensus.

Ethics in Decision Making

Refers to considering moral principles and values when choosing among different courses of action.