Assume the Supply Function for Good X Can Be Written

question 5

Multiple Choice

Assume the supply function for good X can be written as Qs = -100 + 27Px - 5Py - 1.8W,where Px = the price of X,Py = the price of good Y,and W = Wage index for workers in industry X.According to this equation:

• A)X and Y are substitutes in production.
• B)X and Y are complements in production.
• C)a decrease in wages would cause a decrease in the quantity supplied at each price.
• D)each one unit increase in price causes quantity supplied to increase by 73 units.

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Definitions:

Higher-Order Conditioning

A process in classical conditioning by which a stimulus that was previously neutral becomes conditioned by being paired with another conditioned stimulus.

Extinction

In behavioral psychology, the gradual weakening and eventual disappearance of a conditioned response.

Stimulus Generalization

The psychological phenomenon where a response to a specific stimulus becomes triggered by stimuli that are similar in nature.

Conditioned Response

The learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus through classical conditioning.