If Market Demand Decreases in a Market Previously in Long-Run

question 17

Multiple Choice

If market demand decreases in a market previously in long-run equilibrium,

• A)the number of firms increases as each firm downsizes.
• B)it is an indication that the industry has not kept up with new technology.
• C)market price first rises and then falls in the movement to a new long-run equilibrium.
• D)the immediate or short-run effect is a decrease in market price.
• E)the industry ceases to exist.

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Definitions:

Content Theories

Theories that explain why people have different needs at different times and how these needs motivate behavior, such as Maslow’s hierarchy of needs, Alderfer’s ERG theory, McClelland’s need theory, and Herzberg’s two-factor theory.

Process Theories

Theories that describe the cognitive processes through which needs are translated into behavior, such as equity theory, expectancy theory, and goal-setting theory.

Motivation

Motivation is the internal drive or external stimulus that prompts an individual to take action toward achieving a goal.

Practice Talks

Sessions or rehearsals where individuals present their work, speeches, or presentations in front of others to improve and refine their delivery.