If the Demand for a Product in an Increasing Cost

question 110

Multiple Choice

If the demand for a product in an increasing cost perfectly competitive industry increases, we would expect that price in the long run would ________ and the number of firms in the market would ________.

• A) decrease; decrease
• B) increase; increase
• C) decrease; increase
• D) increase; decrease

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Definitions:

Company Car

A vehicle provided by an employer for the business and sometimes personal use of its employees.

Information Search

The process consumers engage in to gather information about products or services to make an informed purchase decision.

Alternative Evaluation

The process by which consumers compare different products or brands against each other to make an informed purchasing decision.

B2B Process

A set of procedures or steps undertaken in commercial transactions between businesses, as opposed to transactions involving individual consumers.