The Study of Individual Choices and Group Behaviour in Individual

question 130

Multiple Choice

The study of individual choices and group behaviour in individual markets defines

• A) microeconomics.
• B) economics.
• C) the scarcity principle.
• D) macroeconomics.
• E) the cost-benefit principlE.

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Definitions:

Price-elastic Demand

A situation where the quantity demanded of a good or service significantly changes in response to changes in its price.

Total Revenue

Total revenue is the total amount of money received by a company from sales of its goods or services before any expenses are subtracted.

Price Inelastic

Refers to a situation where the demand for a product does not change much with a change in price.

Demand Curve Elastic

A characteristic of the demand curve where the quantity demanded by consumers changes significantly as a result of price changes.