Assume the Market Depicted in the Graph Is in Equilibrium

question 40

Multiple Choice

Assume the market depicted in the graph is in equilibrium. If the price is subsequently set at $22, which of the following statements is true? I. Some producers will gain surplus.
II) Some surplus will be transferred from producers to consumers.
III) Total surplus will fall.

• A) III only
• B) II and III only
• C) I and II only
• D) I, II, and III

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Definitions:

Operant Conditioning

An approach to learning in which the vigor of a behavior is influenced by positive or negative stimuli.

Cognitive Learning

A type of learning that involves the mental processes of acquiring knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

Vicarious Learning

The process of learning behaviors or forming attitudes based on observing the actions of others and the consequences of those actions.

Classical Conditioning

A learning process that pairs a neutral stimulus with an unconditioned stimulus to elicit a conditioned response.