Firms Supplying Twisty-Ties Decrease the Quantity Supplied of Inputs by 10

question 56

Multiple Choice

Firms supplying twisty-ties decrease the quantity supplied of inputs by 10% when the price decreases by 5%. The price elasticity of supply for twisty-ties is:

• A) 4.0.
• B) 0.4.
• C) 2.0.
• D) 0.2.
• E) 1.0.

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Definitions:

Ego

The largely conscious, “executive” part of personality that, according to Freud, mediates among the demands of the id, superego, and reality. The ego operates on the reality principle, satisfying the id’s desires in ways that will realistically bring pleasure rather than pain.

Temper Tantrum

An emotional outbreak, usually exhibited by children, characterized by crying, screaming, or aggressive behaviors in response to frustration or lack of control.

Id

Contains a reservoir of unconscious psychic energy that, according to Freud, strives to satisfy basic sexual and aggressive drives. The id operates on the pleasure principle, demanding immediate gratification.

Superego

In Freudian psychology, the part of the psyche that operates as a moral conscience.