If the Price of a Product Increases, Then

question 180

Multiple Choice

If the price of a product increases, then

• A) the budget line rotates and the optimal quantity demanded, which corresponds to the higher price, decreases.
• B) the budget line rotates and the optimal quantity demanded, which corresponds to the higher price, increases.
• C) the budget line shifts outward and the optimal quantity demanded, which corresponds to the higher price, decreases.
• D) the budget line shifts inward and the optimal quantity demanded, which corresponds to the higher price, increases.

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Definitions:

Top-Down Processing

Cognitive processing that begins with the formulation of thought or perception, influenced by expectations and prior knowledge, guiding lower-level processes.

Context Effects

How the context or environment in which information is presented can influence an individual's perception, comprehension, or memory of that information.

Top-Down Processing

The cognitive process that starts with the analysis of high-level information before identifying more detailed data.

Feature Detection

A process in the brain that allows it to recognize different parts or features of an object, such as edges, motion, and colors, in order to identify the object.