Final answer:
Dustin's enhanced dancing on stage compared to in rehearsals is an example of state-dependent performance or social facilitation, where the presence of an audience improves one's abilities.
Step-by-step explanation:
Dustin dances fine during studio rehearsals, but when he is on stage in front of an audience, he dances phenomenally. This scenario is an example of the phenomenon known as state-dependent performance or social facilitation. In psychology, particularly in the context of performance arts, it is observed that the presence of an audience can significantly enhance a performer's ability. This occurs because the arousal caused by the presence of an audience can lead to increased focus and energy, thereby enhancing performance. It's not uncommon for performers like Dustin to experience a noticeable improvement in their abilities when they are in the spotlight and under pressure.