If the Total Expenditure on Perfume Increases When the Price

question 26

Multiple Choice

If the total expenditure on perfume increases when the price of perfume falls,the price elasticity of demand is

• A)greater than one (demand is elastic).
• B)less than one (demand is inelastic).
• C)unity (demand is unit elastic).
• D)exactly zero.
• E)not determinable from the information given.

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Definitions:

Romantic Partner

A significant other in a romantic or loving relationship.

Mere Exposure Effect

An occurrence in psychology where mere exposure to things leads people to prefer them.

Physical Arousal

A physiological state of heightened activity and alertness, characterized by increases in heart rate, blood pressure, and respiration rate, often in response to excitement or stress.

Proximity

The proximity or emotional connection among individuals, things, or concepts, frequently affecting their relations and engagements.