If Consumers but Not Producers Expect That the Price of Soda

question 157

Multiple Choice

If consumers but not producers expect that the price of soda will rise in November, the

• A) supply of soda in October will increase.
• B) demand for soda in October will decrease.
• C) demand for soda in October will increase.
• D) supply of soda in October will decrease.

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Definitions:

Expectancy Model

A motivational theory stating that individuals' motivation is determined by their expected outcomes, based on their efforts and the perceived likelihood of success.

Motivation

The psychological forces that compel an individual to take action towards a desired objective, emphasizing the reasons for specific behaviors.

Behavior

The actions, conduct, or functions of a person or animal in response to external and internal stimuli.

Needs Hierarchy Model

A psychological theory proposed by Abraham Maslow that suggests human needs are arranged in a hierarchy from most to least pressing: physiological needs, safety, love/belonging, esteem, and self-actualization.