In a Competitive Resource Market, a Decrease in the Demand

question 232

Multiple Choice

In a competitive resource market, a decrease in the demand for a productive resource, ceteris paribus, will cause all of the following except a(n)

• A) decrease in the price of the resource.
• B) increase in the price of the resource.
• C) decrease in the total income earned by all units of the resource.
• D) decrease in the number of units of the resource that are employed.

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Definitions:

Demand Pattern

A demand pattern is a trend observed in the way consumer demand for goods or services changes over time.

Second Order

An additional request or transaction following an initial one, often implying a follow-up or repeat business.

Total Order

Total order is the complete quantity of goods or services requested by a customer at a particular time.

Demand Pattern

The trend or tendency of buyers purchasing certain quantities of a product at various times.