Knowing That in the Real World, the Demand for Goods

question 23

Multiple Choice

Knowing that in the real world, the demand for goods and services could change unexpectedly, firms would attempt to deal with it by:

• A)producing different levels of goods and services according to the changes in demand.
• B)switching to the production of another product in the short-run.
• C)maintaining an inventory.
• D)closing down the production in the short-run with the hope that the situation would change in the future.

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Definitions:

Tenancy At Sufferance

A leasehold estate, or tenancy, that arises when a tenant wrongfully remains in possession of the premise after his or her tenancy has expired.

Lease

A contract granting the use of certain real property to another for a specified period in return for the payment of rent.

Adjoining Tracts

Portions of land that are next to each other or sharing a common boundary.

Irrigation Pump

A device utilized to move water from one location to another, often used in agriculture to water crops by delivering water to fields.