Tim Tupper Contracts with Two Other Students to Help Him

question 88

Multiple Choice

Tim Tupper contracts with two other students to help him provide a term paper-typing service.In the last two weeks of the semester, he sees a tremendous increase in demand.His profit-maximizing response would be represented by

• A)a rightward shift of the supply curve because it is possible to earn economic profits
• B)a rightward shift of the supply curve because the increase in demand is probably only temporary
• C)a reduction in supply to take full advantage of the increase in demand
• D)a movement up to the right along the supply curve because the increase in demand is probably only temporary
• E)an upward movement in horizontal demand curve he faces because now he can charge a lower price

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Definitions:

Selective Looking

The process of focusing one's attention on a specific element while ignoring other stimuli.

Feature Detectors

Neurons in the brain that are specialized to respond to specific features of a stimulus, such as angles, edges, or movement.

Top-Down Processing

A method of information processing that uses general context or previous knowledge to understand specific data.

Horizontal Line

A straight line that runs left to right across a plane or surface, parallel to the horizon.