Suppose a 4 Per Cent Increase in Price Results in a 2

question 132

Multiple Choice

Suppose a 4 per cent increase in price results in a 2 per cent increase in the quantity supplied of a good.Calculate the price elasticity of supply and characterise the product.

• A)2; The product is elastic.
• B)0)2; The product is inelastic.
• C)0)5; The product is inelastic.
• D)50%; The product is inelastic.

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Definitions:

Collective Unconscious

A theory proposing that societies share a set of memories and ideas inherited from their ancestors, independent of personal experience.

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology, known for his theories of the collective unconscious and archetypes.

Psychodynamic Theories

Theories developed by Freud’s followers but usually differing somewhat from Freud’s original theories.

Object Relations Perspective

A theory in psychoanalysis focusing on relationships with others, suggesting that the internalization of these relationships impacts individual psyche and behavior.