Suppose Computer Prices at an Office Supply Store Fall from $1,000

question 134

Multiple Choice

Suppose computer prices at an office supply store fall from $1,000 to $900 and as a result the quantity demanded of typewriters decreases from 40 to 20 per month.The cross-price elasticity of demand is closest to

• A)0.16.
• B)0.2.
• C)5.0.
• D)6.3.

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Definitions:

Defense Mechanism

Psychological strategies used by individuals to cope with reality and maintain self-image by unconsciously denying or distorting reality.

Unconscious Impulses

Desires or feelings that a person is not aware of but that influence behaviors and decisions.

Karen Horney

A psychoanalyst known for her theories on neurosis, personality development, and the concept of basic anxiety.

Neo-Freudian

Pertaining to the theorists and psychologists who accepted the broad outlines of Freud's theory but modified and expanded upon it in various ways.