Reducing Price Always Increases Demand of a Product

question 63

True/False

Reducing price always increases demand of a product.

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Definitions:

Extinction

In behavioral psychology, the gradual weakening and eventual disappearance of a learned response following the cessation of reinforcement.

Reinforcement

In psychology, a process of encouraging or establishing a pattern of behavior by offering rewards or punishing unwanted behavior.

Punishment

The imposition of a penalty as a response to an undesired behavior, intended to discourage future occurrences of such behavior.

Negative Consequences

Results of a behavior that a person finds unattractive or aversive.