If Price Increases and the Quantity Purchased Increases, We Know

question 138

Multiple Choice

If price increases and the quantity purchased increases, we know that

• A) supply increased.
• B) supply decreased.
• C) demand increased.
• D) demand decreased.

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Definitions:

Norm of Reciprocity

A social norm stating that people should repay, in kind, what another person has provided for them; the expectation that people will respond favorably to each other by returning benefits for benefits.

Perceptions of Trust

How trustworthiness is viewed by individuals, often influencing their willingness to be vulnerable or to cooperate with others.

Contrast Effect

A cognitive bias where the evaluation of something is influenced by comparisons with recently encountered contrasting objects or events.

Perceiver

Someone who observes and interprets stimuli through the senses, forming perceptions based on their cognitive processes and prior experiences.