After Full Adjustment to a Price Change Has Occurred, the Absolute

question 134

Multiple Choice

After full adjustment to a price change has occurred, the absolute price elasticity of demand for an item is equal to 1. In the short run, the absolute price elasticity of demand for the item was probably

• A) less than 0.
• B) greater than 0.
• C) less than 1.
• D) greater than 1.

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Definitions:

Cholecystokinin

A hormone that stimulates the digestion of fat and protein by facilitating the digestion and slowing the rate of stomach emptying.

Gastric Secretion

is the process of producing and releasing fluids by the gastric glands in the stomach, including acid, enzymes, and mucus.

Acidic Chyme

The partially digested, acidic fluid that passes from the stomach to the small intestine, consisting of gastric juices and partly digested food.

Gastrin

A hormone that stimulates the secretion of gastric acid by the stomach's parietal cells for digestion.