Holding All Other Factors Constant and Using the Midpoint Method,if

question 21

Multiple Choice

Holding all other factors constant and using the midpoint method,if a candy manufacturer increases production by 20 percent when the market price of candy increases from $0.50 to $0.60,then supply is

• A)inelastic,since the price elasticity of supply is equal to .91.
• B)inelastic,since the price elasticity of supply is equal to 1.1.
• C)elastic,since the price elasticity of supply is equal to 0.91.
• D)elastic,since the price elasticity of supply is equal to 1.1.

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Definitions:

Negative Reinforcement

A type of operant conditioning that involves the removal of an unpleasant stimulus to increase the likelihood of a behavior being repeated.

Unfavorable Stimulus

A stimulus considered unpleasant or adverse, which can alter behavior when removed following a specific action.

Favorable Stimulus

A stimulus that elicits a positive response or behavior from an organism.

Negative Reinforcement

A behavior modification technique that increases the likelihood of a behavior by removing or avoiding a negative outcome or stimulus.