Suppose the Price of Gas Increases by 20

question 174

Short Answer

Suppose the price of gas increases by 20%. Will demand be more elastic if consumers have 3 weeks or 3 years to adjust to this price change?

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Definitions:

Criterion Validity

The extent to which a measure is related to an outcome or, more specifically, the effectiveness of a test in predicting an individual's behavior in specific contexts.

Psychological Test

A standardized measure of a sample of a person's behavior or mental processes.

Personality Trait

A characteristic way of thinking, feeling, and behaving that is relatively stable over time and across situations.

Reliable

The quality of being consistently good in quality or performance; able to be trusted.