An Increase in Price Causes:I

question 2

Multiple Choice

An increase in price causes:I. a decrease in revenue due to the price effect.II. an increase in revenue due to the price effect.III. a decrease in revenue due to the quantity effect.IV. an increase in revenue due to the quantity effect.

• A) I and III
• B) II and III
• C) II and IV
• D) II only

---

Definitions:

Displacement

In psychology, a defense mechanism where an individual shifts negative feelings from their original source to a more acceptable or less threatening target.

Denial

A defense mechanism where an individual refuses to accept reality or facts, thus avoiding dealing with painful feelings or events.

Sublimation

A defense mechanism in which socially unacceptable impulses or idealizations are transformed into socially acceptable actions or behavior.

Fight-or-flight Response

A physiological reaction to perceived harmful events, attacks, or threats to survival, initiating a state of heightened readiness for physical action.