Which of the Following Could Be the Price Elasticity of Demand

question 294

Multiple Choice

Which of the following could be the price elasticity of demand for a good for which an increase in price would increase revenue?

• A) 0.2
• B) 1
• C) 1.5
• D) All of the above could be correct.

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Definitions:

Negative Reinforcement

A process in behavior modification by which the likelihood of a behavioral response increases by the removal of an unpleasant stimulus.

Positive Reinforcement

A process in psychology which increases the likelihood of a behavior by following it with a desirable outcome or reward.

Flooding

A therapeutic technique used in psychology to treat phobias and anxiety disorders by exposing the patient to their fear object in a controlled environment.

Habituation

The psychological process by which an individual becomes accustomed to a stimulus and consequently decreases their response to it over time.