In Response to an Unexpected Change in Demand, If the Prices

question 2

Multiple Choice

In response to an unexpected change in demand, if the prices are free to adjust quickly:

• A)a firm could always operate at its optimal output level.
• B)a firm would experience a decline in its output and employment.
• C)a firm would not be able to adjust its output according to the plan.
• D)a firm would not be able to change its employment accordingly.

---

Definitions:

Personal Values

The core beliefs or standards that guide an individual's behavior and decision-making, influencing their personal and professional life.

Uncertainty Reduction Theory

A communication theory that suggests individuals seek to reduce uncertainty about others through information gathering to predict behavior.

Motivated

Having the desire and willingness to achieve something, often driven by internal or external factors that inspire action.

Co-Workers

Individuals who work together in the same organization or on the same team, but not necessarily in the same role or position.