In 2018, the Price of Oil Increased, Which in Turn

question 244

Multiple Choice

In 2018, the price of oil increased, which in turn contributed to a rise in the price of natural gas. This can best be explained by saying that oil and natural gas are

• A) complementary goods, and the higher price for oil increased the demand for natural gas.
• B) substitute goods, and the higher price for oil increased the demand for natural gas.
• C) complementary goods, and the higher price for oil decreased the supply of natural gas.
• D) substitute goods, and the higher price for oil decreased the supply of natural gas.

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Definitions:

Serial-Position Effect

The tendency to recall the first and last items in a list more easily than those in the middle.

Eyewitness Recall

The process by which individuals remember and report events they have observed, significantly relevant in the context of legal testimony.

Operant Conditioning

A learning process in which the strength of a behavior is modified by reinforcement or punishment, a concept introduced by B.F. Skinner.

Classical Conditioning

A form of learning in which a previously neutral stimulus becomes associated with a stimulus that naturally produces a response.