At a Ski Resort Located Over One Hour from the Nearest

question 103

Multiple Choice

At a ski resort located over one hour from the nearest large town, there is only one grocery store and it charges prices more than 200% percent above the typical retail prices. In the long run, we would expect that:

• A) another store will open that will charge equally high prices since competition is low.
• B) the store will continue to earn high profits even in the long run since the size of the market is small.
• C) demand will decrease since people will not want to pay the high prices.
• D) another store will open that will charge lower prices.

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Definitions:

Trait

A characteristic or quality of an organism, often inherited, that can be physical like height or behavioral like shyness.

Psychic Energy

A concept in psychoanalytic theory referring to the force or drive behind human behavior and mental processes.

Libido

The psychoanalytic term for the energy associated with the sexual drives and desires.

Superego

In psychoanalytic theory, the part of the personality that acts as a moral center, guiding behavior according to learned societal standards.