Suppose You Are in Charge of Setting Prices at a Local

question 209

Multiple Choice

Suppose you are in charge of setting prices at a local sandwich shop.The business needs to increase its total revenue,and your job is on the line.If the demand for sandwiches is elastic,you

• A) should increase the price of sandwiches.
• B) should decrease the price of sandwiches.
• C) should not change the price of sandwiches.
• D) could not determine what to do with price until you determine whether supply is elastic or inelastic.

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Definitions:

Skinner Box

An experimental apparatus used in the behavioral study of animals, designed to measure responses to stimuli and consequences, such as rewards or punishments.

B. F. Skinner

An American psychologist known for his work in behaviorism and the development of the operant conditioning theory.

Reinforcement Unit

A measure or instance of reinforcement, which can be positive or negative, used to increase the likelihood of a desired response or behavior.

Primary Reinforcer

A stimulus that is naturally rewarding and satisfies a basic biological need, such as food, water, or sleep.