In 2012 Nike Reduced the Price of Its Running Shoes

question 221

Multiple Choice

In 2012 Nike reduced the price of its running shoes by 20 percent. As a result, the substitution effect caused

• A) the demand for Nike shoes to increase.
• B) people to switch from Adidas shoes and buy more Nikes.
• C) the relative price of Nikes to increase.
• D) the demand curve for Nikes to shift rightward.

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Definitions:

Coping Hypothesis

A theory suggesting how individuals adapt to stressful situations, balancing and managing stress to maintain psychological well-being.

Sigmund Freud

A founding figure of psychoanalysis, Freud developed theories about the unconscious mind, the structure of personality, and the stages of psychosexual development.

Carl Jung

Carl Jung was a Swiss psychiatrist and psychoanalyst who founded analytical psychology, emphasizing the importance of the individual psyche and the personal quest for wholeness.

Antti Revonsuo

A cognitive neuroscientist and psychologist known for his work on consciousness, especially the dreaming brain.