Suppose an Increase in Product Demand Occurs in a Decreasing-Cost

question 74

Multiple Choice

Suppose an increase in product demand occurs in a decreasing-cost industry.As a result,

• A)the new long-run equilibrium price will be lower than the original long-run equilibrium price.
• B)equilibrium quantity will decline.
• C)firms will eventually leave the industry.
• D)the new long-run equilibrium price will be higher than the original price.

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Definitions:

Cognitive Component

The aspect of attitude that pertains to beliefs, thoughts, and knowledge about the object of one's attitude.

Attitude

A settled way of thinking or feeling about someone or something, typically reflected in a person's behavior.

Type A Personality

A personality oriented toward extreme achievement, impatience, and perfectionism.

Type A Personality

A temperament characterized by high levels of competitiveness, self-imposed stress, and a constant sense of urgency.