Refer to the Information Provided in Figure 12

question 110

Multiple Choice

Refer to the information provided in Figure 12.4 below to answer the question(s) that follow. Figure 12.4
There are two sectors in the economy, X and Y, and both are in long-run, zero-profit equilibrium at the intersections of S^{0 and D0.}
-Refer to Figure 12.4. Assume consumer preference changes toward X and away from Y. Ceteris paribus, firms in sector X are now ________ and firms in sector Y are now ________.

• A) breaking even; suffering losses
• B) earning profits; breaking even
• C) earning profits; suffering losses
• D) breaking even; breaking even

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Definitions:

Commitment

The state or quality of being dedicated to a cause, activity, or job.

Compliance

The act of conforming to rules, standards, or instructions, often in a legal, ethical, or organizational context.

Resistance

Opposition or pushback against proposals, changes, or directives perceived as unwanted or detrimental.

Exchange Tactic

is a strategy in negotiations where something is offered in return for something from the other party.