When There Is a Binding Price Floor

question 28

Multiple Choice

When there is a binding price floor

• A)there is no equilibrium.
• B)the quantity demanded does not equal the quantity supplied.
• C)all potential producers are happy because they can sell the good at a higher price.
• D)the government is helping consumers at the expense of producers.

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Definitions:

Behavioral Contrast

A phenomenon observed in behavioral psychology where a change in conditions leads to an opposite change in the individual's response rate, evident in both positive and negative reinforcements.

Higher-order Conditioning

A form of classical conditioning in which a stimulus is first made meaningful or significant through its association with another conditioned stimulus rather than with an unconditioned stimulus.

Sensitization

An increased reaction to a stimulus following repeated exposure to it, often leading to heightened sensitivity to related stimuli.

Habituation

The process by which an organism reduces its response to a repeated stimulus over time.