Figure 4-3 -Refer to the Figure 4-3. If the Price in This

question 126

Multiple Choice

Figure 4-3
-Refer to the Figure 4-3. If the price in this market is currently $14, what would happen?

• A) There would be a shortage of 20 units so producers would increase production.
• B) There would be a surplus of 20 units and the price would tend to fall.
• C) There would be a shortage of 40 units so producers would increase production.
• D) There would be a surplus of 40 units and the price would tend to fall.

---

Definitions:

Faulty Reasoning

This is an erroneous thought process characterized by making illogical conclusions or connections between ideas or events.

Unconscious Impulses

Desires or wishes that reside in the unconscious mind, influencing behavior without the individual's conscious awareness.

Kelly

Refers to George A. Kelly, a psychologist known for his personal construct theory which depicts how individuals construct and predict their world.

Construct System

A psychological concept referring to the framework of ideas and beliefs through which an individual perceives, interprets, and interacts with the world.