Answer:
D. relatively more inelastic because wine is a luxury.
Explanation:
Elasticity is a measure of the sensitivity of demand to price changes. When price changes significantly alter demand, we say that demand is elastic. On the contrary, when price changes do not significantly alter demand, we say that demand is inelastic. This is the case of wine in relation to water. Wine is a good that can be considered sophisticated, luxury. Therefore, consumers are less sensitive to variations in the price of wine. However, water is an abundant good and demanded by all. If the price of water increases, demand tends to decrease as the elasticity of water demand is relatively greater than the elasticity of demand for wine. In other words, wine the demand for wine is relatively more inelastic.
Answer:
Generativity vs. Stagnation.
Explanation:
Erik Erikson was a German-born American psychologist that developed a theory of the 8 Stages of Psychosocial Development that we through our whole life from birth to death. According to this theory, during every stage we face an existential crisis that we must solve in order to develop a healthy personality.
Erikson defines the period between ages 40-60 as the Generativity vs. Stagnation stage. During this stage, people start looking into helping the coming generations to grow and develop as a means of leaving their mark on the world. Failing to do so will lead to stagnation and profound frustration. In our case, <u>Clancey and his wife are clearly going through the Generativity vs. Stagnation stage</u>. By helping in redecorating, remodeling, and babysitting, Clancey and his wife are helping raise the next generations, and it can be said they are successfully solving the crisis associated with this stage.
