The Following Graph Depicts Demand

question 42

Multiple Choice

The following graph depicts demand. The price elasticity of demand at point A is:

• A)5/2.
• B)5/8.
• C)2/5.
• D)8/5.

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Definitions:

Egoism

An ethical theory that treats self-interest as the foundation of morality.

Reciprocity Principle

A social norm suggesting that people are likely to respond to actions with similar actions, contributing to cooperation and social exchange.

Compliance

Superficial, public and transitory change in behaviour and expressed attitudes in response to requests, coercion or group pressure.

Social Responsibility Norm

The idea that we should help people who are dependent and in need. It is contradicted by another norm that discourages interfering in other people’s lives.