In a Constant-Cost Industry, an Increase in Demand Will Be

question 71

Multiple Choice

In a constant-cost industry, an increase in demand will be followed by:

• A) no increase in supply.
• B) an increase in supply that will not change price from the higher level that occurs after the demand shift.
• C) an increase in supply that will bring price down to the level it was before the demand shift.
• D) an increase in supply that will bring price down below the level it was before the demand shift.
• E) a decrease in demand to keep price constant.

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Definitions:

Bill of Rights

The first ten amendments to the United States Constitution, guaranteeing essential rights and freedoms to American citizens.

Daniel Shays

An American soldier and leader known for leading Shays' Rebellion (1786-87), a series of protests by American farmers against state and local enforcement of tax collections.

Federalist Papers

A collection of 85 articles and essays written by Alexander Hamilton, James Madison, and John Jay promoting the ratification of the United States Constitution in the late 1780s.

New Jersey Plan

A proposal at the Constitutional Convention favoring a unicameral legislature with equal representation for each state, regardless of population size.