Reference: Ref 8-8 (Figure: Costs of Price Ceilings) Refer to the Figure

question 37

Multiple Choice

Reference: Ref 8-8 (Figure: Costs of Price Ceilings) Refer to the figure. What is the dollar amount of the deadweight loss after the price ceiling of $4 has been implemented?

• A) $160
• B) $180
• C) $20
• D) $10

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Definitions:

Behavior Modification

A method of therapy rooted in operant conditioning principles, which aims to substitute negative behaviors with positive ones using either rewards or penalties.

Classical Conditioning

The procedure of learning through continual pairing of two stimuli; a behavior that initially results from the second stimulus later results from only the first stimulus.

Instinctive Drift

The inclination of an animal to return to innate behaviors that disrupt a learned reaction.

Extinction

The gradual weakening and eventual disappearance of a learned response.