Toby Sells Wheat in a Perfectly Competitive Market

question 50

Multiple Choice

Toby sells wheat in a perfectly competitive market. This month Toby receives a higher price for a bushel of wheat than he did last month. Which of the following might explain this?

• A) The market demand for wheat increased.
• B) The market demand for wheat decreased.
• C) Firms entered the market.
• D) Toby's costs have decreased.

---

Definitions:

Skinner Box

An experimental device used in behavior analysis to study animal behavior, particularly the effects of reinforcements on behavior.

Cognitive Learning

The acquisition of knowledge and understanding through thought, experience, and the senses.

Social Learning

Social learning is a theory that suggests people can learn new behaviors and information by observing others.

Conditioned Stimulus

A formerly neutral signal that, once paired with an unconditioned stimulus, begins to elicit a conditioned reaction.