The Price of Good X Falls

question 25

Multiple Choice

The price of good X falls.The income-effect of this price change:

• A)will usually cause X purchases to increase.
• B)will usually cause X purchases to decrease.
• C)may cause X purchases either to increase or decrease, there being no "usually" consequence.
• D)by definition, neither increases nor decreases X purchases.
• E)will not apply, since income-effects refer to changes in spendable income, not to price changes.

---

Definitions:

Modern Psychoanalytic Theory

An evolution of Freudian psychoanalysis that may incorporate social, cultural, and interpersonal dynamics in understanding the psyche.

Freud's Theory

A psychoanalytic framework proposed by Sigmund Freud that emphasizes unconscious processes and childhood experiences in shaping personality.

Psychoanalysis

A therapeutic approach and theory of psychology developed by Sigmund Freud that emphasizes unconscious motivations and conflicts.

Id

In psychoanalytic theory, the part of the mind that is the source of instinctive impulses and demands for immediate satisfaction of primitive needs.