In Which Statement(s) Is "Supply" Used Correctly? (I) "An Increase

question 401

Multiple Choice

In which statement(s) is "supply" used correctly? (I) "An increase in the price of eggs will increase the supply of eggs."
(II) "As the cost of producing eggs rises, the supply of eggs will tend to fall."

• A) in both statements I and II
• B) in statement I only
• C) in statement II only
• D) in neither statements I nor II

---

Definitions:

Information-Processing

A cognitive approach that describes the ways in which human beings process, store, retrieve, and use information.

Cognitive-Control

The mental processes involved in regulating and managing thoughts, emotions, and actions to achieve goals or solve problems.

Piagetian Conservation

A concept from Piaget's theory referring to a child's ability to understand that quantities remain the same despite changes in their shape or arrangement.

Information Processing Perspective

The information processing perspective is a way of studying the mind modeled after computer processing, looking at how humans encode, store, and retrieve information.