The Following Diagram Shows Ken's Demand Curve for Neckties

question 24

Multiple Choice

The following diagram shows Ken's demand curve for neckties. When the price of neckties is $5, Ken purchases four neckties. When the price of neckties falls to $4, he purchases five neckties. A decline in the price of neckties causes his expenditure to: ​
Figure 6.3​
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• A)increase from $20 to $25, increasing his consumer surplus.
• B)increase from $20 to $25, decreasing his consumer surplus.
• C)remain constant at $20, leaving his consumer surplus unchanged.
• D)remain constant at $20, increasing his consumer surplus.
• E)decrease from $20 to $15, increasing his consumer surplus.

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Definitions:

Negative Reinforcement

The strengthening of behaviour by making the avoidance of an undesirable consequence contingent on its occurrence.

Operant Conditioning

The control of behaviour by manipulating its consequences.

Unpleasant Consequence

An adverse or negative outcome that follows an undesired behavior, serving as a deterrent.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.