A Theory Asserts That Manufacturers Are Less Willing to Sell

question 108

Multiple Choice

A theory asserts that manufacturers are less willing to sell units of output as the price of a good decreases, ceteris paribus. However, as the price of computers fell throughout the 1990s, more computers were sold. Which of the following best explains the apparent conflict between theory and data?

• A)​The theory must be invalid.
• B)​The theory rests on assumptions that are too simplistic.
• C)​It is likely that variables other than the price and quantity of computers sold were changing.
• D)​All variables other than the price and quantity of computers sold were unchanged.

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Definitions:

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors, driven by the needs, desires, and interests of the individual.

Distress

Negative stress that can result from challenging situations, leading to physical and psychological discomfort.

Empathy

Ability to feel another person’s experiences; identifying with and experiencing another person’s emotions, thoughts and attitudes.

Bystander-Calculus Model

A theoretical framework suggesting that individuals go through a cognitive evaluation process in deciding whether to help in an emergency, considering costs and benefits.