If the Cross Elasticity of Demand Between Two Goods Is

question 470

Multiple Choice

If the cross elasticity of demand between two goods is -0.56, then a fall in the price of one good leads to a ________ shift in the ________ of the other good.

• A) rightward; demand
• B) rightward; supply
• C) leftward; demand
• D) leftward; supply

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Definitions:

Behaviourism

A psychological approach to understanding abnormal behaviour devised by John B. Watson (1858–1935), which declared that psychology must be restricted to the study of observable features, that is, the behaviour of organisms. Watson considered abnormal functioning to be learned and so believed it could be unlearned. His model for learning was derived from Ivan Pavlov’s (1849–1936) studies of classical conditioning.

Classical Conditioning

A learning process where a neutral stimulus becomes associated with a meaningful stimulus and acquires the capacity to elicit similar responses.

Watson

John B. Watson, an American psychologist who established the psychological school of behaviorism.

Early Behaviourists

Psychologists or researchers in the early 20th century who focused on observable behaviors rather than internal processes, founding behaviorism.