The Market for Chewing Gum Is Competitive with a Current

question 34

Multiple Choice

The market for chewing gum is competitive with a current price of 50 cents per pack and a quantity of 100,000 packs per day.Which event would lead to a new equilibrium price of 75 cents and a new equilibrium quantity of 125,000?  

• A) an increase in the price of other kinds of candy 
• B) an increase in the price of the ingredients used to make chewing gum 
• C) a decrease in the number of young people in the population 
• D) a decrease in income

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Definitions:

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.

Attentional Resources

The limited capacity of cognitive resources available for processing sensory information and performing tasks.

Extensive Vocabulary

The wide array of words a person knows and can use effectively in communication.

Short-Term Memory

The component of the memory system that is responsible for temporarily holding information available for processing.