Elasticity of Demand Tends to Be Greater

question 36

Multiple Choice

Elasticity of demand tends to be greater:

• A)the longer the time period involved.
• B)the more complements the good has.
• C)the lower the number of substitutes available.
• D)the more widely defined the commodity class.

---

Definitions:

Image Theory

A descriptive theory of decision making positing that the process consists of two stages: (1) a noncompensatory screening of options against the decision maker’s image of values and future, in which the number of options is reduced to a very small set, and (2) a compensatory choice process (if necessary).

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Wason Selection Task

A logic puzzle that demonstrates the difficulty people have in testing rules in a rational or logical way, often used in the study of deductive reasoning.

Propositional Rule

A statement in logic that expresses a relationship between concepts through propositions or declarative sentences.