The Supply Curve for a Good Will Be More Elastic

question 267

Multiple Choice

The supply curve for a good will be more elastic if:

• A) spending on the good accounts for a large share of a consumer's income.
• B) the good is a luxury item.
• C) production inputs are readily available at a relatively low cost.
• D) there is very little time for producers to respond to a price change.

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Definitions:

Associative Learning

A learning process where a relationship is formed between two stimuli or between a stimulus and a behavior.

Negative Reinforcement

A method in behavioral psychology that increases the likelihood of a behavior by removing an unpleasant stimulus when the behavior occurs.

Discrimination

Biased or unfair behavior towards various groups of individuals, particularly based on their racial background, age, or gender.

Cognitive Perspective

A psychological approach focusing on how people perceive, think, understand, and remember information.