In the Very Short Run, Firms Tend to Respond to Demand

question 24

True/False

In the very short run, firms tend to respond to demand shocks by changing their prices.

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Definitions:

Performance

The execution or accomplishment of work, acts, or tasks as required by a contract or expectation.

Agreement

A mutual understanding or arrangement, often formalized in a contract, between two or more parties to perform or refrain from performing particular acts.

Reasonable Value

The fair or market value of a service or item, considered to be value as determined by what a willing buyer would pay to a willing seller in an arms-length transaction.

Workmanlike Manner

The expectation that services or work performed will meet the standards set by skilled individuals in that trade or industry.