An Increase in the Demand for a Product and a Reduction

question 48

Multiple Choice

An increase in the demand for a product and a reduction in its costs of production would

• A)decrease the profits of producers.
• B)encourage firms to leave an industry.
• C)encourage firms to enter an industry.
• D)cause a shortage of the product.

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Definitions:

Constituents

Individuals or groups who have a stake in or are affected by an organization's actions, decisions, and policies.

Canons of Justice

Principles or standards that guide fairness and equity in economic distribution, legal practices, and public policy.

Decision Making

The cognitive process of selecting a course of action among multiple alternatives, often based on a systematic evaluation.

Framing

This is the process of constructing a viewpoint or perspective in communication, influencing how information is interpreted and understood.