The Demand for a Luxury Good Whose Purchase Would Exhaust

question 8

Multiple Choice

The demand for a luxury good whose purchase would exhaust a big portion of one's income is

• A)perfectly price inelastic.
• B)perfectly price elastic.
• C)relatively price inelastic.
• D)relatively price elastic.

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Definitions:

Own Children

A term referring to one's biological or legally adopted children.

Cognitive Conflict

A psychological state resulting from the confrontation of contradictory information, beliefs, or perceptions, which can lead to cognitive dissonance and the motivation to change one's thoughts or behaviors.

Assimilation

The cognitive process of fitting new information into existing cognitive schemas, perceptions, and understanding.

Accommodation

In cognitive psychology, the process of altering one's existing schemas, or ways of thinking, as a result of new information or experiences.