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.

---

Definitions:

Lexicon

A mental store thought to hold a cognitive processor’s knowledge of words, including their spelling, pronunciation, definition, part of speech, and so on.

Psychological Essentialism

The idea that people possess implicit theories about fundamental characteristics that all instances of a concept contain or embody.

Mental Representation

Internal cognitive symbols that represent external reality or abstract concepts, enabling understanding and reasoning.

Essences

The intrinsic nature or indispensable quality of something, especially something abstract, that determines its character.