Suppose the Demand for Hot Dogs Decreases

question 47

Multiple Choice

Suppose the demand for hot dogs decreases. In the short run, firms that produce hot dogs will experience a fall in prices, which will induce them to

• A) increase production and increase the number of workers.
• B) decrease production and increase the number of workers.
• C) decrease production and reduce the number of workers.
• D) increase production and reduce the number of workers.

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Definitions:

Reversibility

A mental operation in which a child realizes that one operation can be negated, or reversed, by the effects of another.

Reversibility

The cognitive ability to understand that actions can be reversed, returning to the original state.

Mental Operation

Cognitive processes that involve manipulating information mentally, such as reasoning, problem-solving, and decision-making.

Conservation-of-Volume Task

A cognitive development task used in developmental psychology to assess a child's understanding that the quantity of a substance remains unchanged even when its appearance changes.