At a Price of $4 Per Unit, Gadgets Inc

question 21

Multiple Choice

At a price of $4 per unit, Gadgets Inc. is willing to supply 20,000 gadgets, while United Gadgets is willing to supply 10,000 gadgets. If the price were to rise to $8 per unit, their respective quantities supplied would rise to 45,000 and 25,000. If these are the only two firms supplying gadgets, what is the elasticity of supply in the market for gadgets?

• A)1.2
• B)1
• C)0.83
• D)0.8

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Definitions:

Transference

In psychotherapy, the process by which patients project feelings and attitudes from past relationships onto their therapist.

Pleasure Principle

A psychoanalytic concept that drives people to seek immediate gratification of needs and desires.

Psychoanalytic Mechanism

A process identified within Freudian psychology that operates at an unconscious level to help an individual reduce anxiety or cope with internal conflicts and perceived threats.

Superego

A component of Sigmund Freud's psychoanalytic theory, representing the moral conscience and the internalization of societal standards and parents' rules.