The Calculated Price Elasticity of Demand

question 78

Multiple Choice

The calculated price elasticity of demand:

• A) is always a negative number, although it is sometimes reported as an absolute value.
• B) is sometimes negative and sometimes positive, depending on the magnitude of response.
• C) is always a positive number, because price and quantity are directly related in terms of demand.
• D) can be positive or negative, but is always reported as an absolute value.

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Definitions:

Personality Traits

Enduring characteristics that describe an individual's behavior, attitude, and emotions.

Individual Differences

Variations among people in their thinking, emotion, personality, and behavior.

Visibility

The degree to which actions, decisions, or processes are observable, transparent, and open to scrutiny by outside parties.

Centrality

The importance or influence of a node within a network, indicating how vital a point is within the structure.