Suppose a Consumer Has an Income Equal to I Which $P _ { f }$

question 29

Multiple Choice

Suppose a consumer has an income equal to I which he/she spends on either food or clothing. The price of food is given by $P _ { f }$ and the price of clothing is given by $P _ { c }$ . Assume the consumer spends all of their income on clothing. If food is on the $x$ -axis and clothing is on the $y$ -axis, the consumer is at the:

• A) point of maximum indifference.
• B) \(y\)-intercept.
• C) interior of the budget constraint.
• D) origin.

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Definitions:

Stimulus Discrimination

The tendency to respond differently to two or more similar stimuli; in classical conditioning, it occurs when a stimulus similar to the CS fails to evoke the CR.

Stimulus Generalization

The tendency for the conditioned stimulus to evoke similar responses after the response has been conditioned.

Conditioned Responding

A learning process in which an individual develops a response to a previously neutral stimulus by associating it with another stimulus that already elicits a response.

Stimulus Discrimination

The ability to distinguish between different stimuli, responding only to the specific stimulus that is conditioned.