If the Supply Curve for Aspirin Is Perfectly Elastic, a Reduction

question 178

Multiple Choice

If the supply curve for aspirin is perfectly elastic, a reduction in demand will cause the equilibrium price to:

• A)rise and the equilibrium quantity to fall.
• B)rise and the equilibrium quantity to stay the same.
• C)fall and the equilibrium quantity to fall.
• D)stay the same and the equilibrium quantity to fall.
• E)fall and the equilibrium quantity to stay the same.

---

Definitions:

Conditioned Response

A learned response to a previously neutral stimulus that has become conditioned through association.

Unconditioned Response

A natural, automatic reaction to a stimulus that does not require learning to occur, such as flinching at a loud sound.

Waking Up

The transition from sleep to wakefulness, involving physiological and psychological adjustments by the body and mind.

Conditioned Stimulus

A previously neutral stimulus that, after being repeatedly paired with an unconditioned stimulus, elicits a conditioned response.