If Elasticity of Demand Is 0

question 19

Multiple Choice

If elasticity of demand is 0.1,a 1% increase in price will lower quantity demanded by

• A)0.01%.
• B)0.1%.
• C)1.0%.
• D)10%.
• E)100%.

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Definitions:

Asch Effect

A form of conformity in which a person changes their own opinion to match the majority opinion in a group, often in the context of social pressure.

Juror

A member of a jury, which is a group of citizens sworn to give a verdict in a legal case on the basis of evidence presented to them in court.

Informational Social Influence

The influence to conform or change behavior based on the desire to be correct, or to understand the correct way to act in a given situation.

Correct Choice

The optimal selection among various alternatives based on criteria or preferences.