Which Statement Is Consistent with an Increase in the Quantity

question 154

Multiple Choice

Which statement is consistent with an increase in the quantity of output supplied, according to the misperceptions theory?

• A) The price level increases less than expected so that firms believe the relative price of their output has increased.
• B) The price level increases less than expected so that firms believe the relative price of their output has decreased.
• C) The price level increases more than expected so that firms believe the relative price of their output has increased.
• D) The price level increases more than expected so that firms believe the relative price of their output has decreased.

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Definitions:

Natural Mimicry

The innate or instinctual ability to imitate or reproduce behaviors, sounds, or appearances observed in the environment.

Informational Social Influence

The influence to conform to what we believe others think is correct, often due to the desire or need for accuracy.

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort resulting from holding two or more contradictory beliefs, ideas, or values.

Personal Control

The belief or perception that one has the ability to influence the outcome of events in their own life.