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

question 27

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:

Workplace Hazardous Materials Information System (WHMIS)

Canada's national system providing safety information about hazardous materials used in the workplace, including labeling, material safety data sheets, and worker training.

Work-Related Injuries

Injuries that occur to employees in the course of their employment, which can range from minor incidents to serious accidents.

Occupational Illness

Any abnormal condition or disorder, other than one resulting from an occupational injury, caused by exposure to environmental factors associated with employment.

Environmental Factors

Pertains to external elements, including social, economic, geographical, and political factors, that can influence an individual's or organization's performance and decision-making process.