If the Unexpected Short-Run Fluctuations in Demand Begin to Look

question 35

Multiple Choice

If the unexpected short-run fluctuations in demand begin to look permanent:

• A)the firms would allow their prices to change accordingly.
• B)the firms would be hesitant to allow their prices to change accordingly.
• C)the firms would not allow their prices to change.
• D)the firms would change the quality of their products but not the prices.

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Definitions:

Unconditioned Stimulus

An unconditioned stimulus is a stimulus that automatically triggers a reflexive response without any prior learning or conditioning.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Generalization

The process in learning where a response to a specific stimulus is extended to include responses to similar stimuli.

Biological Preparedness

The concept that certain associations are learned more readily than others due to evolutionary predispositions.