If the Amount of Money That People Are Willing to Spend

question 52

True/False

If the amount of money that people are willing to spend on a good stays the same when its price doubles, then demand for that good must have a price elasticity of demand smaller in absolute value than 1.

---

Definitions:

Superior Colliculus

A structure in the midbrain involved in visual processing, eye movements, and orientation responses.

Orienting Responses

The body's automatic reaction to stimulus, involving attention and physiological adjustments to better sense the stimulus.

Circadian Rhythms

Biological cycles that occur on a roughly 24-hour schedule, regulating various physiological processes including sleep, alertness, and hormone production.

Lateral Geniculate Cell

A type of neuron in the thalamus that plays a critical role in processing and carrying visual information to the visual cortex.