The Budget Line Shift from Cd to Ab in the Below

question 71

Multiple Choice

The budget line shift from cd to ab in the below figure is consistent with:

• A)decreases in the prices of both M and N.
• B)an increase in the price of M and a decrease in the price of N.
• C)a decrease in money income.
• D)an increase in money income.

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Definitions:

Habituation

A psychological learning process wherein there is a decrease in response to a stimulus after being repeatedly exposed to it.

Acquisition Behavior

A behavioral psychology term referring to the process of learning new behaviors, often through conditioning.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired: a response which is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Ivan Pavlov

A Russian physiologist known for his research on classical conditioning, demonstrating how organisms can learn to associate neutral stimuli with reflexive responses.