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Sara's Sensible Critters makes two kinds of catnip toys: balls (x1) and mice (x2). The relationship between demand and price for balls and mice is:
x1 = 1800 - 150p1
x2 = 1500 - 300p2
The cost for a catnip ball is $2 and for the mouse, $3.
Sara has only 200 ounces of catnip on hand. A ball uses a tenth of an ounce and a toy mouse uses one-quarter of an ounce.
-Sara has found an unlimited source of catnip so that is no longer a constraint. However, customer demand dictates that she produce 2.5 times more catnip balls than mice. How will this impact the prices that she should charge to maximize profit?
Extinction
In psychology, extinction refers to the gradual weakening and eventual disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.
Vicarious Learning
A process of learning through observing the actions and consequences of others, without direct personal experience.
Observing Others
involves learning behaviors, attitudes, or emotions through watching the actions of others, also known as observational learning or social learning.
Classical Conditioning
The method of teaching through the repeated coupling of two stimuli; the response, initially caused by the second stimulus, is later caused by only the first stimulus.
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