When the Price of Chai Tea Lattés Is $5,Maxine Buys

question 144

Multiple Choice

When the price of chai tea lattés is $5,Maxine buys 20 per month.When the price is $4,she buys 30 per month.Maxine's demand for chai tea lattés is

• A)elastic,and her demand curve would be relatively flat.
• B)elastic,and her demand curve would be relatively steep.
• C)inelastic,and her demand curve would be relatively flat.
• D)inelastic,and her demand curve would be relatively steep.

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Definitions:

Drive Reduction

A theory of motivation suggesting that behaviors are motivated by the desire to reduce internal states of tension.

Incentive Motivation

The idea that the level of motivation is affected by magnitude of reward: The greater the reward magnitude, the higher the motivation to obtain that reward.

Internal Arousal

The physiological and psychological state of being alert and engaged, often as a response to external stimuli or internal thoughts.