If a 5 Per Cent Decrease in the Price of a Good

question 71

Multiple Choice

If a 5 per cent decrease in the price of a good produces a 5 per cent increase in the quantity demanded, the price elasticity of demand is:

• A) perfectly elastic.
• B) perfectly inelastic.
• C) elastic.
• D) unitary elastic.

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Definitions:

Intermittent Reinforcement

A conditioning schedule in which a behavior is rewarded at random intervals, which can lead to a high level of response persistence.

Desired Behaviour

The specific actions or reactions that an organization or individual aims to elicit from others, typically to achieve a certain goal or outcome.

Reinforcement Schedule

A pattern that determines how often a desired behavior is reinforced in operant conditioning, influencing how quickly and robustly that behavior is learned.

Negative Reinforcement

A behavioral principle where the removal of an unfavorable outcome or stimulus strengthens a desired behavior.