What Would Happen in the Market for SUVs If the Government

question 112

Multiple Choice

What would happen in the market for SUVs if the government started to subsidize the production of SUVs that get very few miles per gallon and the price of gasoline went up?

• A) The equilibrium price will go up and equilibrium quantity will go up.
• B) The equilibrium price will go down and equilibrium quantity will be indeterminate.
• C) The equilibrium price will be indeterminate and equilibrium quantity will go up.
• D) The equilibrium price will go up and equilibrium quantity will be indeterminate.
• E) The equilibrium price will be indeterminate and equilibrium quantity will go down.

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Definitions:

Variable-interval Schedule

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed, contributing to a steady, stable rate of response.

Specific Number

An exact quantity or value, often mentioned to denote precision or to highlight importance within a particular context.

Randomly Varying

Characterized by changes that do not follow a predictable pattern and occur in a random manner.

Reinforcement

In behaviorism, a consequence that increases the likelihood of a behavior being repeated.