Suppose We Observe a Rise in the Price of Good

question 89

Multiple Choice

Suppose we observe a rise in the price of good A and a decrease in the quantity of good A bought and sold.Which one of the following is a likely explanation?

• A)The law of supply is violated.
• B)The demand for A decreased.
• C)The demand for A increased.
• D)The supply of A increased.
• E)The supply of A decreased.

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Definitions:

Unconditioned Stimulus

A stimulus that naturally triggers a reflexive response without any prior learning or conditioning.

Negative Reinforcement

A behavior modification technique where the removal of an unpleasant stimulus in response to a behavior increases the likelihood of that behavior being repeated.

Unpleasant Stimulus

A stimulus that is undesirable or disagreeable and tends to produce a negative response in an individual.

Compensation

A defense mechanism characterized by efforts to overcome imagined or real inferiorities by developing one’s abilities.