If Producers Incorrectly Set the Price of Their Product Too

question 112

Multiple Choice

If producers incorrectly set the price of their product too high:

• A) a shortage will result.
• B) a surplus will result.
• C) equilibrium will result.
• D) the industry will die out soon.

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Definitions:

Classical Conditioning

A technique in learning where two stimuli are regularly brought together; a reaction, at the beginning caused by the second stimulus, is in the end caused by the first stimulus alone.

Applied Behavior Analysis

A therapy based on the science of learning and behavior, focusing on improving specific behaviors and understanding the influence of the environment on behavior.

Immediate Reinforcements

Immediate rewards or punishments following a behavior, which increase or decrease the likelihood of that behavior being repeated.

Behavior Modification

The use of empirically demonstrated techniques to improve behavior, often by altering an individual's response to environmental stimuli.