The Demand for Space Heaters Is Q = 250 -

question 40

Multiple Choice

The demand for space heaters is Q = 250 - P + 2COOL,where COOL is the absolute value of the difference between the average overnight low temperature and 40°F.Assume that the average overnight low this month is 40°F.When the price of space heaters is P = $50,the price elasticity of demand is:

• A) -1.38.
• B) -13.8.
• C) -0.138.
• D) -1.50.
• E) -0.25.

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Definitions:

Trait

A characteristic or quality of an organism, often inherited, that can be physical like height or behavioral like shyness.

Psychic Energy

A concept in psychoanalytic theory referring to the force or drive behind human behavior and mental processes.

Libido

The psychoanalytic term for the energy associated with the sexual drives and desires.

Superego

In psychoanalytic theory, the part of the personality that acts as a moral center, guiding behavior according to learned societal standards.