If a Producer Offers a Price That Is in Excess

question 2

Multiple Choice

If a producer offers a price that is in excess of a consumer's valuation of the good, the consumer:

• A)must buy the good at that price.
• B)will refuse to purchase the good.
• C)must revalue the good.
• D)none of the statements associated with this question are correct.

---

Definitions:

Recognize

The cognitive process of identifying a previously encountered or learned piece of information or object.

Relearning

The process of learning material or skills that were previously learned and then forgotten.

Encoding Specificity Principle

A principle in psychology that suggests the recall of information is more effective when the context at the time of encoding matches the context at the time of retrieval.

State-Dependent Memory

The phenomenon where information learned in a particular state or context is better recalled when in that same state or context.