Calculate the Income Elasticity If an 8 Percent Increase in Income

question 73

Multiple Choice

Calculate the income elasticity if an 8 percent increase in income leads to a 4 percent increase in quantity demanded for organic produce.

• A)-0.66
• B)0.5
• C)1.5
• D)2

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Definitions:

Transference

In psychotherapy, the process by which patients project feelings and attitudes from past relationships onto their therapist.

Pleasure Principle

A psychoanalytic concept that drives people to seek immediate gratification of needs and desires.

Psychoanalytic Mechanism

A process identified within Freudian psychology that operates at an unconscious level to help an individual reduce anxiety or cope with internal conflicts and perceived threats.

Superego

A component of Sigmund Freud's psychoanalytic theory, representing the moral conscience and the internalization of societal standards and parents' rules.