Which of the Following Describes a Situation in Which Demand

question 158

Multiple Choice

Which of the following describes a situation in which demand must be inelastic?

• A) The price of pens rises by 10 cents, and quantity of pens demanded falls by 50.
• B) The price of pens rises by 10 cents, and total revenue rises.
• C) A 20 percent increase in the price of pens leads to a 20 percent decrease in the quantity of pens demanded.
• D) Total revenue does not change when the price of pens rises.
• E) Total revenue decreases when the price of pens rises.

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Definitions:

Disposition

Refers to a person's inherent qualities of mind and character.

Ingroup Behaviour

Actions and norms practiced by members within a group, which foster unity and differentiate the group from others, emphasizing shared identity and interests.

Cultural Group

describes a collection of individuals who share common cultural characteristics, such as language, traditions, and values.

Fundamental Attribution Error

Bias in attributing another’s behaviour more to internal than to situational causes.