Table 6-2 -Refer to Table 6-2.Assume That an Economist Has Estimated the Economist

question 5

Multiple Choice

Table 6-2

-Refer to Table 6-2.Assume that an economist has estimated the price elasticity of demand values in the table above.Use the data in the table to select the correct statement.

• A)The demand for Coca-Cola is inelastic.
• B)The elasticity for "All soft drinks" is less than the elasticity for Coca-Cola because Coca-Cola is more of a luxury than a necessity; "All soft drinks" represent goods that are more necessity than luxury.
• C)The difference in elasticity values is explained by the fact that the more narrowly we define a market the more elastic the demand will be.
• D)There are fewer substitutes for "All carbonated soft drinks" than there are for "All soft drinks."

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Definitions:

Oedipus Complex

In psychoanalysis, a conflict occurring in the phallic (Oedipal) stage, in which a child desires the parent of the other sex and views the same-sex parent as a rival.

Phallic Stage

A phase in Freudian psychosexual development, occurring from ages 3 to 6, where the focus of libido is on the genital area.

Superego

In psychoanalytic theory, the part of the personality that acts as a moral center, enforcing ethical standards and societal norms.

Psychosexual Development

Freud's theory that childhood development occurs in a series of fixed psychosexual stages, each characterized by different urges and conflicts.