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For One Week, a 15-Second Cartoon Keeps Appearing on TV

question 95

Multiple Choice

For one week, a 15-second cartoon keeps appearing on TV showing an animated purple frog hopping and dancing around to some unfamiliar zyedeco music. The frog and music capture your attention, but you cannot figure out why the segment is being shown. The next week, you see a new commercial showing people eating and partying at a New Orleans‒style restaurant with waitstaff wearing the same purple frog on their shirts. A voice-over gives the name of the new restaurant-The Purple Frog-and describes specialties on the menu. You decide to try the new restaurant for yourself. Later that week, you are in the car when the zyedeco music from the first week's cartoon plays on the radio. You immediately turn to your friend and say "Hey, that's an ad for the Purple Frog Restaurant, let's go there for lunch." Although the zyedeco music was not actually played either in the commercial or at the restaurant itself, you assume that you are hearing a commercial for the restaurant because of the classical conditioning process of

Definitions:

Demand Curve

A visual representation indicating the link between the price of an item and the quantity of it that buyers seek.

Market-determined Price

The price of a good or service as dictated by the forces of supply and demand in a competitive market, without external interventions.

Elastic

Describes a situation in which the demand or supply for a good is sensitive to changes in price.

Firm

A business organization, such as a corporation or partnership, that sells goods or services in exchange for revenue.