If the Price of a Product Increases, Then

question 180

Multiple Choice

If the price of a product increases, then

• A) the budget line rotates and the optimal quantity demanded, which corresponds to the higher price, decreases.
• B) the budget line rotates and the optimal quantity demanded, which corresponds to the higher price, increases.
• C) the budget line shifts outward and the optimal quantity demanded, which corresponds to the higher price, decreases.
• D) the budget line shifts inward and the optimal quantity demanded, which corresponds to the higher price, increases.

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Definitions:

Pleasure Principle

A concept in psychoanalytic theory which states that people seek pleasure and avoid pain, guiding the id's demands for immediate gratification of its desires.

Logic and Reason

The application of systematic methods of thinking and reasoning to objectively analyze and draw conclusions.

Basic Fault

In psychoanalytic theory, a deep-seated issue arising from early developmental stages that leads to psychological problems in adulthood.

Object Relations Theory

Object Relations Theory is a psychoanalytic theory that emphasizes relationships and the impact of the internalized images of these relationships on psychological processes.