If a Small Percentage Change in Price Causes a Larger

question 121

Multiple Choice

If a small percentage change in price causes a larger percentage change in the quantity demanded, the good has:

• A) an inelastic demand.
• B) a low magnitude of response.
• C) an elastic demand.
• D) a high magnitude of response.

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Definitions:

Cerebral Cortex

The cerebral cortex is the outermost layer of the brain, involved in complex brain functions such as thought, memory, consciousness, language, perception, and attention.

Peripheral Nervous System

Part of the nervous system outside the brain and spinal cord, including all the nerves that extend to the rest of the body, responsible for transmitting sensory and motor information.

Somatic Nervous System

The part of the peripheral nervous system that handles voluntary control of body movements through the control of skeletal muscles.

Sensory Neurons

Nerve cells responsible for converting external stimuli from the organism's environment into internal electrical impulses.