Two Events Occur Simultaneously in the Market for Automobiles: (1)an

question 159

Multiple Choice

Two events occur simultaneously in the market for automobiles: (1) an improvement in assembly line technology and (2) the economy enters a recession (which decreases consumers' income) .An economist would predict with certainty that

• A)equilibrium quantity will rise
• B)equilibrium quantity will fall
• C)equilibrium price will rise
• D)equilibrium price will fall
• E)the equilibrium price will remain the same

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Definitions:

Family Branding

A marketing strategy where a group of related products is marketed under a single brand name.

Instrumental Conditioning

A form of learning where an individual's behavior is modified by its consequences; also known as operant conditioning.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.

Rewards and Punishments

Incentives and consequences used to reinforce desired behavior and discourage unwanted behavior, respectively.