Suppose That We Are in a Condition of Fully Flexible

question 29

Essay

Suppose that we are in a condition of fully flexible prices, but production of nails will not go above 6,000 kg/week.What price will nails sell for if market demand is characterized by: (a) P = 5 - 0.5Q, (b) P = 6 - 0.5Q, and (c) P = 4 - 0.5Q, where P is in $/kg and Q is in thousands of kg/week?

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Definitions:

Operant Conditioning

A method of learning that uses rewards and punishments for behavior, an idea proposed by B.F. Skinner that emphasizes the consequences of behavior for future actions.

Behaviors

Observable actions or responses of humans or animals to internal or external stimuli.

Seals

Aquatic marine mammals with a streamlined body, primarily living in cold seas and known for their thick fur or blubber.

Learned Associations

Connections made between two stimuli or between a behavior and a response, which are acquired through experience.