The Price Elasticity of a Good Will Tend to Be

question 120

Essay

The price elasticity of a good will tend to be larger:
A.the longer the relevant time period.
B.the fewer the number of substitute goods available.
C.if it is a staple or necessity with few substitutes.
D.if the share of income spent on the good is small.

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Definitions:

Pleasure Principle

A concept in psychoanalytic theory referring to the instinctual seeking of pleasure and avoiding of pain to satisfy biological and psychological needs.

Reality Principle

A psychoanalytic concept referring to the ability of the mind to assess the external world and act upon it accordingly, balancing with the pleasure principle.

Ego

In psychoanalytic theory, the part of the personality responsible for dealing with reality while satisfying the demands of the id and superego.

Strong Ego

In psychoanalytic theory, a well-balanced self that effectively manages the demands of the id, superego, and reality.