Suppose the Supply of Bicycles Is Price Elastic

question 160

Multiple Choice

Suppose the supply of bicycles is price elastic. This means that

• A) consumers will respond significantly to an increase in the quantity supplied of bicycles.
• B) suppliers will increase the quantity supplied of bicycles, but not immediately.
• C) suppliers face many substitutes for bicycles.
• D) suppliers will respond significantly to changes in the price of bicycles.

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Definitions:

Schema

A mental structure or idea that aids in categorizing and understanding information in the brain.

Preoperational Stage

A developmental phase, outlined by Jean Piaget, where children from about 2 to 7 years old engage in symbolic play and struggle with logic and taking the perspective of others.

Conservation

A cognitive ability recognized by Jean Piaget that allows a person to determine that a quantity will remain the same despite adjustment of the container, shape, or apparent size.

Object Permanence

The understanding that objects continue to exist even when they cannot be observed or heard.