A Theory Asserts That Manufacturers Are Less Willing to Sell

question 137

Multiple Choice

A theory asserts that manufacturers are less willing to sell units of output as the price of goods decreases. However, as the price of computers fell throughout the 1990s, more computers were sold. Which of the following explanations of the apparent conflict between theory and data is most accurate?

• A) It is likely that variables other than the price and quantity of computers sold were changing.
• B) The theory must be invalid.
• C) The theory rests on assumptions that are too simplistic.
• D) All variables other than the price and quantity of computers sold were unchanged.

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Definitions:

Self-Comparison Bias

The tendency to make favorable comparisons between oneself and others, which can lead to an inflated sense of self-esteem or competence.

Global Self-Esteem

Refers to the overall value that one places on oneself as a person, integrating beliefs and feelings from various aspects of self-concept into a single self-assessment.

Non-Academic Area

Aspects of education or development that don't include formal classroom learning, such as sports, clubs, and personal hobbies.