Because Many Resource Prices Are Set by Long-Term Contracts, in the Short

question 200

Multiple Choice

Because many resource prices are set by long-term contracts, in the short run

• A) costs will increase by more than product prices when demand increases.
• B) costs will decrease when the demand for products increases.
• C) costs will increase by less than product prices when demand increases.
• D) costs will decrease by more than product prices when demand decreases.

---

Definitions:

Clever Hans

A famous case study in early 20th century psychology of a horse that was claimed to have been able to perform arithmetic and other intellectual tasks.

Arithmetic

A branch of mathematics dealing with the properties and manipulation of numbers, including operations such as addition, subtraction, multiplication, and division.

Selective Attrition

The process where certain kinds of participants drop out of a study over time, potentially skewing the results.

Demand Characteristics

Subtle cues or signals in an experimental setup that suggest to participants what behavior is expected or desired, potentially influencing the outcomes of the study.