Suppose We Observe an Increase in the Price of Good

question 121

Multiple Choice

Suppose we observe an increase in the price of good A and an increase in the quantity of good A exchanged.Which of the following is a likely explanation?

• A)The "law of demand" is violated.
• B)The "law of supply" is violated.
• C)The supply of good A has increased.
• D)There is an excess supply of good A.
• E)The demand for good A has increased.

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Definitions:

Network of Associations

A concept in cognitive psychology referring to how ideas or memories are linked together in the mind through shared qualities or experiences.

Spreading Activation Model

A cognitive model that explains how information is retrieved in the brain based on the concept of networks of connected ideas.

Memory

The faculty by which the mind stores and remembers information, allowing past experiences to influence future behavior and cognition.

Schema

A cognitive framework or concept that helps organize and interpret information in the world around us.