Sam Has Quasilinear Preferences and His Demand Function for X

question 24

Multiple Choice

Sam has quasilinear preferences and his demand function for x is D(p) = 15 -p/3.The price of x is initially $15 per unit and increases to $24 per unit.Sam's change in consumer's surplus is closest to

• A)-168.
• B)-76.
• C)-27.
• D)75.
• E)Sam won't consume x at either of the prices.

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Definitions:

Operant Conditioning

An approach to modifying behavior strength through the implementation of positive or negative feedback.

Extinction

In psychology, the gradual weakening and eventual disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Reinforcement

In behavior psychology, a consequence that will strengthen an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.

Operant Conditioning

The method of transforming behavior intensity by administering either reinforcements or punishments.