Economic Theory States That More of a Good Is Supplied

question 34

Multiple Choice

Economic theory states that more of a good is supplied at a higher price than a lower one,yet the sales of digital cameras have increased while their prices have fallen.This statement

• A) reflects the fact that economics is not a precise science and its predictions are sometimes incorrect.
• B) merely illustrates that the digital camera market may be an exception to the general rule.
• C) applies only to the supply side and overlooks the tremendous increase in the demand for digital cameras.
• D) confuses changes in the quantity supplied with changes in supply.
• E) ignores the fact that the current price may be below the equilibrium level.

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Definitions:

Classical Conditioning

The teaching technique where, through the continuous association of two stimuli, a reaction that is initially caused by the second stimuli is later caused by the first stimuli on its own.

Skinner

Refers to B.F. Skinner, an American psychologist known for his work in behaviorism and the development of the theory of operant conditioning.

Tolman

Refers to Edward Chace Tolman, an American psychologist who contributed significantly to the study of learning and cognition through the concept of latent learning and cognitive maps.

Kohler

A psychologist known for his work on Gestalt psychology, particularly for studies on insight learning and problem-solving in animals.