"As the Price of Personal Computers Continues to Fall, Demand

question 118

Multiple Choice

"As the price of personal computers continues to fall, demand increases." This headline is inaccurate because:

• A)a change in the price of personal computers shifts the demand curve.
• B)a change in the price of personal computers shifts the supply curve.
• C)the statement is backwards: increased demand leads to lower prices.
• D)a falling price for personal computers increases quantity demanded, not demand.

---

Definitions:

Object Permanence

The realization that objects still exist even when they are not perceivable through sight, hearing, touch, smell, or any sensory means.

Egocentrism

A cognitive bias that causes individuals to interpret the world from their own perspective, often failing to understand that others may have different points of view.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched.

Goal-Directed Behavior

Behavior motivated towards achieving a specific outcome or goal.