The Valuation Principle Shows How to Make the Costs and Benefits

question 63

True/False

The Valuation Principle shows how to make the costs and benefits of a decision comparable so that we can evaluate them properly.

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Definitions:

Price Elastic

A term related to price elasticity of demand, indicating how responsive the quantity demanded of a good or service is to a change in its price.

Product

Anything that can be offered to a market to satisfy a want or need, including goods, services, and ideas.

Income Elasticity

A measure of how the demand for a good or service changes in relation to a change in income.

Good

A tangible product that satisfies human wants or needs.