The Kinked Demand Curve Is an Explanation of Sticky Prices

question 234

True/False

The kinked demand curve is an explanation of sticky prices.

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Definitions:

Shaping

A method in behavioral psychology where successive approximations of a desired behavior are reinforced until the exact behavior is achieved.

Token Economy

A behavior modification system that utilizes tokens as a form of reinforcement for desirable behaviors, which can be exchanged for rewards.

Variable Interval Schedule

A reinforcement strategy in operant conditioning where a response is rewarded after an unpredictable amount of time has passed.

Dopamine Activity

Involves the action of the neurotransmitter dopamine in the brain, affecting mood, sleep, learning, and motor control.