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:

Chicken Livers

Edible organs from chickens, often cooked and eaten as food, rich in nutrients like iron and vitamin A.

Bed

A piece of furniture typically used for sleeping and resting, consisting of a mattress and frame.

Extinction

In behavioral psychology, the gradual weakening and eventual disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Conditioned Stimulus

An initially impartial stimulus which, upon association with an unconditioned stimulus, gradually brings about a conditioned response.