With a Rise in the Price of Digitally Streamed Music

question 40

Multiple Choice

With a rise in the price of digitally streamed music from $0.50 to $1.00 per song,the number of songs bought falls from 3 million to 1 million.Hence the numerical value of the price of elasticity of demand for this product is:

• A)1.50
• B)4.00
• C)2.00
• D)1.33
• E)0.67

Identify how cultural, social, and situational contexts influence individual behavior.

Understand the distinction between informational and normative influences.

Grasp the significance of self-esteem and self-awareness in conformity.

Analyze the ethical implications of psychological experiments on conformity and obedience.

---

Definitions:

Government Bond

A type of investment where an investor loans money to a government in exchange for periodic interest payments plus the return of the bond's face value at maturity.

Treasury Bill

A Treasury Bill (T-Bill) is a short-term U.S. government debt obligation backed by the Treasury Department with a maturity of one year or less.

Inflation Rate

The inflation rate measures how much the general level of prices for goods and services is rising, and, subsequently, how purchasing power is eroding over time.