A Professor Changes the Penalty for Cheating on Exams from Getting

question 207

Multiple Choice

A professor changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in the course.The professor has

• A) increased the marginal cost of cheating.
• B) decreased the marginal benefit of cheating.
• C) made all the students act in the social interest.
• D) recognized that students don't respond to incentives.
• E) recognized that students don't make rational choices.

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Definitions:

Quantity Demanded

The amount of a good or service that consumers are willing to buy at a given price at a specific time.

Equilibrium Price

The price point at which the quantity of goods supplied equals the quantity demanded, resulting in market balance.

Equilibrium Quantity

At the equilibrium price, the volume of goods or services both offered and sought.

Quantity Supplied

The amount of a good or service that producers are willing and able to offer for sale at a given price level in a given time period.