If the Absolute Value of the Price Elasticity of Demand

question 20

Multiple Choice

If the absolute value of the price elasticity of demand for DVD movies is 0.8 then the elasticity of demand for the DVD for the movie The Hangover should be

• A) less then 0.8 in absolute value.
• B) greater than 0.8 in absolute value.
• C) equal to 1 in absolute value.
• D) equal to zero because the DVD of this movie has been out for several years.

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Definitions:

Dialogue

A conversation between two or more people as a feature of a book, play, or movie, or a discussion aimed at resolution.

Positive Reinforcement

A technique in behavior modification that involves rewarding a desirable behavior in order to increase the likelihood of its recurrence.

Human Nature

The inherent characteristics, including ways of thinking, feeling, and acting, that humans are believed to have naturally.

Recognition

The act of acknowledging or identifying something or someone seen, heard, or known previously.