If a Market Is Allowed to Adjust Freely to Its

question 41

Multiple Choice

If a market is allowed to adjust freely to its equilibrium price and quantity,then an increase in demand will

• A)increase producer surplus.
• B)reduce producer surplus.
• C)not affect producer surplus.
• D)Any of the above are possible.

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Definitions:

Higher Order Conditioning

A process in behavioral psychology where a conditioned stimulus is paired with a new neutral stimulus, creating a second-level conditioned response.

Conditioned Stimulus

A previously neutral stimulus that, after being paired with an unconditioned stimulus, elicits a conditioned response.

Operant Conditioning

A process of behavioral adjustment where the level of an action is modified through the application of rewards or punishments.

Extinction

In psychology, the gradual weakening and disappearance of a conditioned response tendency.