Refer to the Accompanying Figure

question 180

Multiple Choice

Refer to the accompanying figure. If demand shifts from D1 to D2, and at the same time, supply shifts from S1 to S2, then according to the figure:

• A)the equilibrium quantity will increase and the equilibrium price will decrease.
• B)the equilibrium quantity will increase and the equilibrium price will increase.
• C)the equilibrium quantity will decrease and the equilibrium price will increase.
• D)the equilibrium quantity will decrease and the equilibrium price will decrease.

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Definitions:

Contrived Extrinsic Rewards

Artificial incentives given to motivate behavior, such as bonuses or points, that do not naturally relate to the task being performed.

Feedback

Information provided about the outcomes of a process or activity, used to adjust or improve future performance or decision-making.

Law of Immediate Reinforcement

A principle suggesting that reinforcement (rewards or punishments) following a behavior makes it more likely that the behavior will occur again in the future.

Punishment

A consequence or penalty imposed for wrongdoing or breach of rules, intended to modify behavior through negative reinforcement.