Which of the Following Is Not Characteristic of the Demand

question 71

Multiple Choice

Which of the following is not characteristic of the demand for a commodity that is elastic?

• A) The relative change in quantity demanded is greater than the relative change in price.
• B) Buyers are relatively sensitive to price changes.
• C) Total revenue declines if price is increased.
• D) The elasticity coefficient is less than one.

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Definitions:

Arousal Theory

A theory in psychology that suggests people are motivated to maintain an optimal level of arousal, neither too high nor too low.

Drive-Reduction Theory

A theory in psychology that explains motivation as being based on the goal of eliminating uncomfortable states.

Boredom

A state of mind characterized by a perceived lack of interest in one's surroundings, leading to feelings of frustration or disengagement.

Motivational Theories

Theories that seek to understand, explain, and predict how and why people are motivated to act in certain ways under various conditions.