Suppose a Decrease in World Demand for Potash (Used in the Production

question 82

Multiple Choice

Suppose a decrease in world demand for potash (used in the production of fertilizer) decreases the price from $400 per tonne to $240 per tonne.Annual Canadian production decreases from 12 million tonnes to 8 million tonnes.What is the elasticity of supply of Canadian potash?

• A)0.4
• B)0.8
• C)0.75
• D)1.0
• E)1.25

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, triggers a conditioned response.

Counterconditioning

A classical conditioning procedure for changing the relationship between a conditioned stimulus and its conditioned response.

Classical-Conditioning Procedure

A pairing method of learning where two stimuli when frequently associated, lead to a response initially prompted by the second stimulus but subsequently by the first stimulus alone.

Conditioned Stimulus

A formerly neutral signal that, once it is linked with an unconditioned stimulus, ultimately leads to eliciting a conditioned response.