Which of the Following Statements Is Correct

question 23

Multiple Choice

Which of the following statements is correct?

• A)A price ceiling is not binding when the price ceiling is set above the equilibrium price.
• B)A price floor is not binding when the price floor is set below the equilibrium price.
• C)A binding price ceiling causes a shortage and a binding price floor causes a surplus.
• D)All of the above are correct.

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Definitions:

Mowrer's Two-process Theory

A psychological theory proposing that avoidance learning is a combination of classical conditioning and operant conditioning.

Operant Avoidance Learning

A learning process in which the subject acquires a behavior to prevent or avoid an unpleasant stimulus.

Discriminative Stimulus

A stimulus in the environment that signals the availability of reinforcement or punishment, guiding behavior accordingly.

Negative Reinforcement

A behavior modification technique that involves the removal of an unpleasant stimulus after a desired behavior is exhibited, making the behavior more likely to happen in the future.