The Demand for Clothing Increases

question 102

Multiple Choice

The demand for clothing increases. As a result, the price of clothing increases above the minimum average cost of producing it. In the long run, if the clothing industry is perfectly competitive and is a constant-cost industry:

• A) the supply of clothing and the price of clothing will increase.
• B) the supply of clothing will increase but the price will not.
• C) the price of clothing will increase but the supply will not.
• D) neither the price nor the supply of clothing will increase.

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Definitions:

Additional Sales

Sales that occur in addition to the primary product or service being offered, often as a result of upselling or cross-selling strategies.

Follow-Up Step

An action taken after an initial meeting, call, or interaction to maintain contact and advance towards achieving the desired outcome.

Customer Satisfaction

Feelings toward the purchase.

Buying Decision

The process of deciding whether to purchase a product or service, influenced by various factors.