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.

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