If the Absolute Price Elasticity of Demand for a Product

question 151

Multiple Choice

If the absolute price elasticity of demand for a product is greater than 1, then

• A) the absolute price elasticity of demand is inelastic and consumers are relatively insensitive to price changes.
• B) the absolute price elasticity of demand is inelastic and consumers are relatively sensitive to price changes.
• C) the absolute price elasticity of demand is elastic and consumers are relatively insensitive to price changes.
• D) the absolute price elasticity of demand is elastic and consumers are relatively sensitive to price changes.

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Definitions:

Personal Attribution

The process of attributing one's own behaviors or the behaviors of others to personal characteristics or dispositions.

Situational Attribution

The process of ascribing behavior to external factors, circumstances, or the environment.

Just World Hypothesis

The Just World Hypothesis is the belief that the world is a fair place and that people get what they deserve.

Conformity

The process of adjusting one's behavior or thinking to match those of other people or a group standard.