Elastic Demand Exists When

question 1

Multiple Choice

Elastic demand exists when:

• A)a small percentage decrease in price produces a smaller percentage increase in quantity demanded and total revenue falls.
• B)a small percentage decrease in price produces a larger percentage increase in quantity demanded and total revenue increases.
• C)an increase in price causes a larger increase in quantity demanded and total revenue falls to zero.
• D)a small percentage decrease in price produces a smaller percentage decrease in quantity demanded and total revenue increases.

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Definitions:

Monarch Caterpillars

Caterpillars of the Monarch butterfly, known for their striking striped patterns and feeding on milkweed plants.

Distance Effect

A phenomenon in psychology where the distance between stimuli affects response time; in cognitive tasks, greater distances usually lead to faster responses.

Geographic Location

A specific place or position within a physical space that is identified using coordinates or a descriptive address.

Edge Effect

The ecological phenomenon in which ecotones between adjacent communities often contain a greater number of species or greater population densities of certain species than either adjacent community.