When There Is a Surplus of a Good

question 224

Multiple Choice

When there is a surplus of a good:

• A) sellers will lower the price in order to increase quantity demanded.
• B) sellers will raise the price in order to decrease quantity demanded.
• C) sellers will compete with buyers.
• D) this is an indication the buyers do not value the good.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.