If an Increase in Income Results in a Rightward Parallel

question 42

Multiple Choice

If an increase in income results in a rightward parallel shift of the demand curve,then at any given price,the price elasticity of demand will have

• A) increased in absolute terms.
• B) decreased in absolute terms.
• C) remained unchanged.
• D) increased, decreased or stayed the same. It cannot be determined.

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Definitions:

Libido

A term used in psychoanalytic theory to denote the energy of the sexual drive as a component of the life instinct.

Collective Unconscious

A concept in psychology that refers to the part of the unconscious mind which is derived from ancestral memory and experience and is common to all humankind.

Superego

In Freudian psychoanalysis, the part of the personality that acts as the moral center, imposing the values and morals learned from parents and society.

Ideal Self

Represents a person's conception of how they would like to be, encompassing aspirations, goals, and standards against which current self is measured.