An Increase in the Relative Price of a Good Cannot

question 438

Multiple Choice

An increase in the relative price of a good cannot be caused by

• A) an increase in the nominal price of the good that is greater than the increase in the nominal price of the other good.
• B) a decrease in the nominal price of the good that is less than the decrease in the nominal price of the other good.
• C) a decrease in the nominal price of the other good while the price of the good itself remains constant.
• D) an increase in the nominal price of the other good while the price of the good itself remains constant.

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Definitions:

Observational Learning

The process by which an individual learns by observing the actions and outcomes of others' behaviors.

Classical Conditioning

A learning process that involves associating an involuntary response and a stimulus.

Insight Learning

Insight learning is the process of learning how to solve a problem or do something new by applying what is already known, involving an 'aha' moment of understanding.

Generalization

The process of applying the principles learned from specific instances to broader and different situations.