An Economist Estimates That

question 107

Multiple Choice

An economist estimates that .67 is the price elasticity of demand for disposable diapers. This suggests that disposable diaper producers could:

• A) advertise more to raise the price elasticity of demand.
• B) encourage more parents to use cloth diapers.
• C) lower the price of disposable diapers to raise more revenue.
• D) raise the price of disposable diapers to raise more revenue.
• E) maximize revenues by staying at the current price.

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Definitions:

Id

In psychoanalytic theory, the part of the mind in which innate instinctive impulses and primary processes are manifest.

Superego

In psychoanalytic theory, the part of a person's mind that acts as a self-critical conscience, reflecting social standards learned from parents and environment.

Moral Component

Aspects of behavior, thought, and emotion concerning ethics, values, and principles of right and wrong.

Psychodynamic Theories

A group of theories in psychology that emphasize the influence of the unconscious mind on behavior and are based on the ideas of Sigmund Freud.