An Increase in Price

question 42

Multiple Choice

An increase in price:

• A) cannot cause a quantity effect.
• B) always increases revenue due to the price effect.
• C) may increase or decrease revenue.
• D) always decreases revenue due to the quantity effect.

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Definitions:

Positive Reinforcement

A process where introducing a stimuli following a behavior leads to an increase in the frequency of that behavior, reinforcing the desired action.

Positive Punishment

A method in behavioral psychology that involves adding an unfavorable outcome in response to an undesirable behavior to decrease its occurrence.

Negative Punishment

A behavioral psychology concept where reducing or removing a desirable stimulus follows an unwanted behavior, aiming to decrease that behavior's frequency.

Behaviorist Movement

A movement in psychology that focuses on observable behaviors, avoiding theories about mental processes, and emphasizes the environmental impacts on a subject's behavior.