Suppose That the Owner of a Local Ice Cream Store

question 13

Multiple Choice

Suppose that the owner of a local ice cream store, knowing that demand for ice cream is higher when the weather is warmer, always charges a price in cents for a scoop of ice cream that is equal to two times the current outdoor temperature, measured in Fahrenheit (so that if it is 90 degrees outside, the ice cream is $1.80 per scoop) . This type of behavior is ________.

• A)exactly the type of behavior that Keynes believed most firms exhibit
• B)known as meeting demand
• C)inconsistent with the key assumption upon which the basic Keynesian model is built
• D)free from menu costs

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Definitions:

Thermocouple

A temperature sensor made by joining two different metals that generate a voltage proportional to a temperature difference.

Backplane Current

The electrical current flowing through the backplane of a computer or other electronic system, providing power to mounted components or modules.

Chassis Power Supply

The component that provides electrical power to a computer or device's chassis and its internal components.

PLC Input Interface

The PLC input interface is the component of a Programmable Logic Controller (PLC) where data from external devices is received and converted into a format that the PLC can process.