FIGURE 6- 4 -Refer to Figure 6- 4. for Both Goods, the Price

question 108

Multiple Choice

FIGURE 6- 4
-Refer to Figure 6- 4. For both goods, the price increases from P0 to P1. The substitution effect is illustrated by the change in quantity demanded from A to B; the income effect is illustrated by the change in quantity demanded from B to C. Good Y is certainly a(n) good.

• A) normal
• B) Giffen
• C) luxury
• D) necessity
• E) inferior

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Definitions:

Long-Term Potentiation

A process that strengthens synapses based on recent patterns of activity, playing a key role in learning and memory.

Neural Excitability

Refers to the ease with which neurons can fire and transmit an electrical impulse.

Cortical Activation

The process of stimulating areas of the cerebral cortex, leading to increased alertness, attention, and readiness for cognitive activities.

Motivated Forgetting

This is a psychological defense mechanism where individuals unconsciously choose to forget disturbing memories, information, or thoughts as a way to cope or manage stress.