The Less Responsive Consumers Are to a Change in the Price

question 29

Multiple Choice

The less responsive consumers are to a change in the price of a product:

• A)the more price-elastic is the supply curve.
• B)the more income-elastic is the demand curve.
• C)the more price-inelastic is the demand curve.
• D)the more income-elastic is the supply curve.
• E)the more price-elastic is the demand curve.

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Definitions:

Extraneous Variables

Variables outside of the independent variables being studied that can affect the outcome of an experiment, potentially confounding the results.

Independent Variable

The variable in an experiment that is manipulated or changed to observe its effect on a dependent variable.

Control Variables

Factors in an experiment that are kept constant to test the relative impact of the independent variable.

Control Group

In an experiment, the group that does not receive the treatment and is used as a benchmark to measure how the other tested groups compare.