When the Price of a CD Is $13 Per CD

question 483

Multiple Choice

When the price of a CD is $13 per CD, 39,000,000 CDs per year are supplied. When the price is $15 per CD, 41,000,000 CDs per year are supplied. What is the elasticity of supply for CDs?

• A) 2.86
• B) 0.35
• C) 0.14
• D) 0.05

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Definitions:

Situational Cues

Environmental or contextual factors that can influence behavior or perceptions in a given situation.

Schachter Two-factor

A theory suggesting that human emotions are produced by physical arousal followed by a cognitive interpretation of the arousal based on environmental cues.

Emotional States

These are temporary feelings or moods experienced by individuals, such as happiness, anger, or sadness.

Physiological Cues

Bodily signals that indicate to an individual how they are feeling physically or emotionally, often in response to internal or external factors.