Figure 5-11 -Refer to Figure 5-11.A Decrease in Price from $20 to from $20

question 233

Multiple Choice

Figure 5-11
-Refer to Figure 5-11.A decrease in price from $20 to $10 leads to a

• A)decrease in total revenue of $200,so the price elasticity of demand is greater than 1 in this price range.
• B)decrease in total revenue of $200,so the price elasticity of demand is less than 1 in this price range.
• C)decrease in total revenue of $120,so the price elasticity of demand is less than 1 in this price range.
• D)decrease in total revenue of $120,so demand is elastic in this price range.

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after being paired with an unconditioned stimulus, elicits a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that unconditionally—naturally and automatically—triggers a response without prior conditioning.

Unconditioned Response

In classical conditioning, the automatic and natural reaction elicited by the unconditioned stimulus.

Neutral Stimulus

A neutral stimulus is a stimulus that initially produces no specific response other than focusing attention, until it is paired with an unconditioned stimulus.