Which of the Following Is an Example of Partial Equilibrium

question 95

Multiple Choice

Which of the following is an example of partial equilibrium analysis?

• A) A tax on Internet sales reduces the quantity of online sales and the demand for Internet access. The lower price for Internet access will spur increased demand for online sales.
• B) A deep freeze has destroyed much of the orange crop, raised the price of oranges, and reduced the quantity sold.
• C) Productivity enhancements in the manufacturing sector have increased wages in that sector, putting upward pressures on wages necessary to attract workers to the service sector.
• D) Scientific research indicates that there are health benefits to wearing cotton. Knowledge of these benefits raises the demand for cotton and reduces the supply of corn as farmers plant more cotton.

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Definitions:

Unscientific

A term used to describe methodologies, claims, or practices not based on or consistent with the principles of the scientific method.

Sexual Energy

A term often used to describe the force or drive behind sexual actions and desires, considered a powerful aspect of human physiology and psychology.

Freud

The pioneer of psychoanalytic theory, emphasizing unconscious motivations and conflicts as key drivers of human behavior.

Id

In psychoanalytic theory, the part of the mind in which innate instinctive impulses and primary processes are manifest.