Given a Positively Sloped Supply Curve, a Rise in the Demand

question 44

Multiple Choice

Given a positively sloped supply curve, a rise in the demand for that commodity causes

• A)a decrease in the equilibrium price and an increase in the equilibrium quantity exchanged.
• B)an increase in both the equilibrium price and the equilibrium quantity exchanged.
• C)a fall in sales of that commodity.
• D)a shortage of other goods.
• E)a decrease in both the equilibrium price and the equilibrium quantity exchanged.

---

Definitions:

Conditioned Stimulus

An originally neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.

Unconditioned Response

An unconditioned response is an automatic, natural reaction to a stimulus, which does not require prior learning to occur.

Ivan Pavlov

A Russian physiologist known for his work on classical conditioning, demonstrating how organisms learn through association.

Unconditioned Response

A natural, automatic reaction to a stimulus that does not require learning to take place.