April Runs a Small Bakery in Northern Minnesota

question 101

Multiple Choice

April runs a small bakery in northern Minnesota.Her most popular item is her homemade cranberry scone.As a pricing experiment,April raises the price of her raspberry scones by 5 percent and sees daily sales fall by 2 percent.From this experiment,April can estimate the price elasticity of demand for her cranberry scones as approximately ________.

• A) 0.4 percent
• B) 2 percent
• C) 2.5 percent
• D) 5 percent

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Definitions:

Displacement

In Freudian psychology, the unconscious shifting of an impulse or emotion from its original object to another object.

Projection

A defense mechanism where an individual attributes their own unacceptable thoughts, feelings, or motives to someone else.

Rationalisation

A psychological strategy where questionable actions or emotions are rationalized in a way that appears logical, to sidestep the real reasons behind them.

Psychosexual Stages

Freud's theory of personality development, which posits that children pass through distinct stages centered on erogenous zones, with unsuccessful navigation potentially resulting in lifelong neuroses.