If the Demand Curve in a Decreasing Cost Market Shifts

question 3

Multiple Choice

If the demand curve in a decreasing cost market shifts up and to the right, then:

• A)the long run price decreases and the long run quantity increases.
• B)the long run price and quantity increase.
• C)the long run price stays the same and the long run quantity increases.
• D)the long run price and quantity decrease.

---

Definitions:

Pension Fund

A pool of assets forming an independent legal entity that is used to fund pension plan benefits promised to employees upon retirement.

Periodic Pension Expense

The expense recognized in an accounting period related to employer-sponsored pension plans, reflecting service cost, interest cost, expected return on plan assets, and amortization.

Defined Contribution Pension Plans

Retirement plans where employer contributions are specified, and the benefits received by the employee depend on the plan's investment performance.

Pension Fund Asset

Financial resources that a pension fund holds to meet future obligations to participants, including equities, bonds, real estate, and other investments.