A Theory Asserts That Consumers Will Purchase Less of a Good

question 86

Multiple Choice

A theory asserts that consumers will purchase less of a good at higher prices than they will at lower prices, ceteris paribus. However, when the average price of cars increased throughout the 1990s, more cars were purchased. Which of the following best explains the apparent conflict between theory and data?

• A)​The ceteris paribus assumption is valid.
• B)​It is likely that variables other than the price and quantity of cars demanded were changing.
• C)​The theory is valid.However, the price and quantity data gathered by researchers was clearly measured incorrectly.
• D)​The theory must be invalid.

Understand the characteristics and applications of projective tests.

Distinguish between different types of personality tests and their suitability for certain psychological assessments.

Acknowledge the limitations and potential biases in projective tests and self-report inventories.

Understand key concepts in humanistic theories of personality, including growth needs and self-actualization.

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