The Price Elasticity of New Automobile Purchases Is About 1

question 100

Multiple Choice

The price elasticity of new automobile purchases is about 1.2.This implies that an increase of $1,000 on a $10,000 automobile will

• A)reduce the number of autos sold by approximately 1.2 percent.
• B)increase the consumer expenditures on autos by approximately 1.2 percent.
• C)reduce the number of autos sold by approximately 12 percent.
• D)increase consumer expenditures on autos by approximately 12 percent.

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Definitions:

Highly Incongruent

Refers to situations or stimuli that are vastly inconsistent or contrasting with expected norms or patterns.

Super-Ego

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

Psychosexual Stages

A theory by Freud describing how personality develops through five stages from infancy to adulthood, centered on sexual pleasure.

Response Tendencies

The likelihood of a person to react in a specific manner when presented with a particular stimulus.