If the Demand for Table Salt Were Perfectly Inelastic at All

question 40

Multiple Choice

If the demand for table salt were perfectly inelastic at all prices, a decrease in supply would

• A)increase the price and decrease the quantity demanded.
• B)increase the price while not affecting the quantity demanded.
• C)reduce the quantity demanded to zero no matter what the initial price.
• D)have no effect on either price or quantity demanded.

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Definitions:

Negative Reinforcement

A behavioral psychology concept where the removal of an unfavorable outcome or stimulus strengthens a desired behavior.

Punishment

A consequence given to reduce the occurrence of a particular behavior.

Modelling

The process of representing a real-world system or phenomenon through a set of mathematical equations, simulations, or physical replicas.

Extinction

In behavior, the process by which a previously reinforced behavior is weakened by no longer providing reinforcement.