The Demand for Computer Chips Is a Downward Sloping Straight

question 268

Multiple Choice

The demand for computer chips is a downward sloping straight line. If there is an increase in the supply of computer chips, this change will

• A) increase the price elasticity of demand for computer chips.
• B) decrease the price elasticity of demand for computer chips.
• C) have no effect on the price elasticity of demand for computer chips.
• D) have an unpredictable effect on the price elasticity of demand for computer chips.

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Definitions:

Aggressive Impulses

Natural or instinctive drives toward hostile behavior or expressions of anger or frustration.

Psychosexual Stages

In Freud’s theory, developmental periods with a characteristic sexual focus that leave their mark on adult personality.

Genital

Relating to the external organs of reproduction.

Latency

The period or delay between a stimulus and the response to it; often used in psychology and computing.