Two People See the Same Thing at the Same Time

question 20

Multiple Choice

Two people see the same thing at the same time yet interpret it differently. In this situation, factors that operate to shape their dissimilar perceptions reside in the ________.

• A) perceivers
• B) target
• C) timing
• D) context
• E) situation

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Definitions:

Law of Demand

The economic principle stating that as the price of a good decreases, consumer demand for that good will increase, and vice versa, holding everything else constant.

Quantity Demanded

The amount of a good consumers are willing and able to buy per period at a particular price, as reflected by a point on a demand curve.

Real Income

Income measured in terms of the goods and services it can buy; real income changes when the price changes.

Law of Demand

A principle stating that, all else being equal, as the price of a good or service decreases, consumer demand for it will increase, and vice versa.