For a Particular Good, a 3 Percent Increase in Price

question 23

Multiple Choice

For a particular good, a 3 percent increase in price causes a 10 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?

• A) The relevant time horizon is short.
• B) The good is a necessity.
• C) The market for the good is broadly defined.
• D) There are many close substitutes for this good.

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Definitions:

Conscious

Conscious refers to the state of being aware of one's own existence, thoughts, emotions, and surroundings.

Superego

In psychoanalytic theory, the part of the personality that acts as the moral center, imposing ethical standards and social rules.

Reality Principle

A psychoanalytic concept that represents the ability of the mind to assess the external world and act upon it accordingly, as opposed to acting on the pleasure principle.

Newborn Children

Infants that are in the very first weeks of life, typically characterized by rapid growth and development.