Kevin, Who Is Currently Maximizing His Utility, Buys Movies and Computer

question 231

Multiple Choice

Kevin, who is currently maximizing his utility, buys movies and computer games. If the price of computer games drops

• A) Kevin will then consume only computer games and zero movies.
• B) equilibrium will not be disturbed because it is a permanent condition.
• C) Kevin is temporarily in disequilibrium and will buy more games and fewer movies in order to re-establish equilibrium.
• D) Kevin is temporarily in disequilibrium and will buy more movies and fewer games in order to re-establish equilibrium.

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Definitions:

Erikson's Stages

A theory of psychosocial development outlining eight stages, each characterized by a specific psychological conflict that contributes to a person's growth and personality.

Intimacy Versus Isolation

A stage in Erik Erikson's theory of psychosocial development focusing on young adults' development of close, personal relationships versus feelings of loneliness and isolation.

Settling Down

The process of becoming more stable or fixed in a particular place, role, or life stage, often implying a reduction in volatility or movement.

James Marcia

A developmental psychologist known for his work on adolescent identity formation and his expansion of Erikson’s stages of psychosocial development.