When an Individual Producer Sets a Price for Its Product

question 71

Multiple Choice

When an individual producer sets a price for its product to earn a certain profit while consumers search for the product at the lowest price available from any producer,we say there is a

• A)separation in time.
• B)discrepancy of quantity.
• C)separation in values.
• D)discrepancy of assortment.
• E)spatial separation.

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Definitions:

Extinction

In psychology, the gradual disappearance of a conditioned response when the reinforcement is withheld; in biology, the end of an organism or of a group of organisms.

Stimulus Generalization

A psychological phenomenon where a response is elicited by stimuli similar, but not identical, to the original stimulus used in conditioning.

Classical Conditioning

A training method where two stimuli are consistently associated, leading to a response initially triggered by the second stimulus being ultimately triggered by the first stimulus alone.

Salivate

Salivate refers to the secretion of saliva by the salivary glands in the mouth, often in response to the sight, smell, or taste of food.