When the Price of a Product Rises, the Increase in Quantity

question 233

Multiple Choice

When the price of a product rises, the increase in quantity supplied will generally be greater in the long run than the short run because

• A) producers maximize short-run, not long-run, profits.
• B) over time, new firms will enter the industry and old firms will expand their operations in response to the price increase.
• C) consumers are less resistant to higher prices in the long run than in the short run because they have fewer options in the long run.
• D) consumer income will expand in the long run, causing resource prices to rise, which will induce producers to increase output.

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Definitions:

Number of Groups

Refers to the distinct categories or partitions within a study or analysis that can include different conditions, treatments, or classifications for comparison.

Null Hypothesis

A statement in statistical hypothesis testing that assumes no effect or no difference between groups or variables.

Number of Groups

Refers to the total count of distinct categories or sets into which subjects or objects are classified for a study or analysis.

Degrees of Freedom

The count of unique values or quantities that may be allocated to a statistical distribution.