Suppose Two Goods Are Perfect Substitutes

question 384

Multiple Choice

Suppose two goods are perfect substitutes. The price elasticity of demand of one of the goods is

• A) 0.
• B) 1.
• C) 10.
• D) infinity.

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Definitions:

Asch

Refers to Solomon Asch, a psychologist known for his research on conformity and social pressure.

Line Comparison Experiment

An experiment, often associated with Solomon Asch's studies, that demonstrates how social pressure can influence individuals to conform, even when evidence contradicts the group's consensus.

Conformed

The process of adjusting one's behavior or thinking to match those of others, typically in a group context.

Door-In-The-Face Effect

A compliance technique that involves making a large request that is expected to be turned down in order to increase the likelihood that a smaller request will be accepted.