If the Price of a DVD Falls from $20 to $12

question 247

Multiple Choice

If the price of a DVD falls from $20 to $12 and the quantity of DVDs supplied decreases from 118,000 per hour to 100,000 per hour,using the midpoint formula the elasticity of supply equals

• A) 0.33.
• B) 2.94.
• C) 3.08.
• D) 0.23.
• E) -3.08.

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Definitions:

Dual Processing

The notion that two networks exist within the human brain, one for emotional processing of stimuli and one for analytical reasoning.

Imaginary Audience

The other people who, in an adolescent’s egocentric belief, are watching and taking note of his or her appearance, ideas, and behavior. This belief makes many teenagers very self-conscious.

Prefrontal Cortex

The part of the brain located at the front of the frontal lobe, associated with complex cognitive behavior, personality expression, decision making, and moderating social behavior.

Limbic System

A complex system of nerves and networks in the brain, involved with instinct and mood control; it also plays a key role in emotions and memories.