Suppose, as a Result of a Long-Run Adjustment in a Perfectly

question 83

Multiple Choice

Suppose, as a result of a long-run adjustment in a perfectly competitive industry to a change in demand, price and output both fell.Therefore, demand must have __________ in this __________ industry.

• A)fallen; increasing cost
• B)fallen; decreasing cost
• C)increased; increasing cost
• D)increased; decreasing costs
• E)decreased; constant cost

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Definitions:

Perceptual Sets

Psychological mechanisms that influence how people perceive and interpret sensory information based on their expectations and prior experiences.

Internal Factor

An influence, element, or condition within an organization that affects its operations and outcomes.

Person Perception

The process of forming impressions and making judgments about other people's traits, intentions, and behaviors.

Perceiver Characteristics

Attributes or traits of the individual observing and interpreting others' behaviors, such as biases, attitudes, experiences, and personality, that affect their perceptions.