If an Increase in Income Results in Higher Prices for Yachts

question 36

Multiple Choice

If an increase in income results in higher prices for yachts, we can conclude

• A)that yachts are inferior goods.
• B)that there was a decrease in the supply of yachts.
• C)that there was an increase in the supply of yachts.
• D)that yachts are normal goods.
• E)there's no relationship between income and the demand for yachts.

---

Definitions:

Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used, hindering the ability to see alternative uses or solutions.

Mental Set

A framework or mindset that shapes how a person approaches problems, based on previous experiences and perceptions.

Restructuring

Restructuring in psychology refers to the process of identifying and altering maladaptive thought patterns to improve emotional regulation and behavior.

General Intelligence

A theory proposing that a single factor underlies many cognitive abilities, such as reasoning, problem-solving, and knowledge.